QualDerm Partners, LLC: 3,117,874 individuals, Feb 2026.

OCR classifies the incident as a hacking or IT incident, with the breached information held in a network server. Hacking/IT Incident is the type recorded on 121 of the 196 Tennessee filings (62%) and on 86% of all filings submitted in 2026. Network Server appears on 43% of Tennessee filings.

No business associate is recorded on the filing; 36% of Tennessee filings do involve one. At 3,117,874 individuals the breach is 925 times the Tennessee median filing of 3,371 and 779 times the national median of 4,000 across all 7,884 filings. It is one of 149 filings on the register of one million or more individuals.

As of 28 August 2026 the case is listed by HHS OCR under Cases Currently Under Investigation. OCR has not published a closing summary, so this page is limited to the fields on the filing itself; the archive entry that follows a closed investigation usually adds a short account of what was exposed and what the entity did afterwards.

Tennessee's breach notification statute (Tenn. Code Ann. 47-18-2107) requires notice to affected residents immediately, but no later than 45 days from discovery or notification. Its attorney general threshold: no mandatory AG notification for private-sector breaches. The HIPAA Breach Notification Rule ran alongside it: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery, which is the clock that put this filing on the portal.

Multiplying 3,117,874 individuals by IBM's $160 customer-PII cost per record (Cost of a Data Breach 2025, the figure the site's calculator uses) gives a modelled $499M; the 2026 edition's $192 gives $599M. Both are modelled estimates with the method shown, not costs disclosed by QualDerm Partners, LLC. Because the filing is above the roughly 100,000-record range in which the per-record figure is reliable, the result is an upper bound, not an estimate: fixed costs are spread across far more records at this scale.