Form: Cost-of-Breach DisclosureSource: IBM Cost of a Data BreachFiled: 28 Apr 2026
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Filing TX-20161003-rainbow-childrens-clinicHHS OCR Breach Register, Texas

Breach filing

Archived

Rainbow Children's Clinic: 33,698 individuals, Oct 2016.

Rainbow Children's Clinic reported a breach of unsecured protected health information to the HHS Office for Civil Rights on 3 October 2016. The filing records the organisation as a healthcare provider in Texas and lists 33,698 individuals affected, which makes it the 132nd largest of the 633 Texas filings on the register and the 31st largest of the 328 filings submitted nationally in 2016. Among the 23 Texas filings made in 2016 it ranks 3rd.

Individuals affected

33,698

As reported to HHS

Modelled cost (IBM 2025)

$5.39M

Method shown, not disclosed

Rank in TX

132nd

of 633 Texas filings

Rank in 2016

31st

of 328 filings nationally

Section F.1 / The filing

As posted by HHS OCR

Every value below is the portal's own field for this filing, plus its rank within the register.

Covered entity type
Healthcare Provider
Individuals affected
33,698
Breach submission date
3 October 2016
Submission year
2016
Type of breach
Hacking/IT Incident
Location of breached information
Network Server
Business associate present
No
Portal status
listed in the HHS OCR breach portal archive
Rank in Texas by size
132nd of 633
Rank in 2016 nationally
31st of 328
Texas median filing
4,055 individuals
Register id (derived)
TX-20161003-rainbow-childrens-clinic

Section F.2 / In context

Where this filing sits in Texas and in 2016

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 360 of the 633 Texas filings (57%) and on 35% of all filings submitted in 2016. Network Server appears on 45% of Texas filings.

No business associate is recorded on the filing; 27% of Texas filings do involve one. At 33,698 individuals the breach is 8.3 times the Texas median filing of 4,055 and 8.4 times the national median of 4,000 across all 7,884 filings. It sits in the 10,000 to 99,999 band, which holds 1,938 filings.

As of 28 August 2026 the case is listed in the HHS OCR breach portal archive. OCR's closing summary of the case is reproduced in full below.

Texas's breach notification statute (Tex. Bus. & Com. Code 521.053) requires notice to affected residents without unreasonable delay, no later than the 60th day after determining a breach occurred. Its attorney general threshold: 250 or more Texas residents. 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 33,698 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 $5.39M; the 2026 edition's $192 gives $6.47M. Both are modelled estimates with the method shown, not costs disclosed by Rainbow Children's Clinic. For scale, IBM's 2026 average cost of a healthcare breach is $6.64M, so this filing models at 1.0 times the sector average.

Section F.3 / OCR closing summary

The portal's archived description, in full

Written by the Office for Civil Rights when the case was closed and reproduced verbatim from the HHS export.

On August 3, 2016, a hacker accessed the covered entity's (CE) computer system and subsequently launched a ransomware attack, which began encrypting data stored on the CE's computer servers. The CE immediately shut down its computer system to prevent loss of patient information, and promptly launched an investigation. The CE retained an independent computer forensic expert to assist with the investigation and discovered that some patient records were irretrievably deleted. The CE provided breach notification to HHS, affected individuals, and the media. The CE did not receive any indication that any personal data was misused. However, out of an abundance of caution, the CE offered affected patients identity protection services. Following the breach, the CE installed new anti-virus protection software on all machines operating on its network. It also implemented a policy that specifies staff will be trained on the following topics: how to identify/handle potential scams/hoaxes; how protection software operates; good security practices for web browsing, sharing files, email attachments; risks of installing unsupported software, and; what to do when anti-virus and mal-ware protection software detects a computer virus or worm. OCR obtained assurances that the CE implemented the corrective actions noted above.

Section F.5 / Modelled cost

33,698 individuals through IBM's per-record figures

Modelled cost / method shown, not a disclosed cost

Modelled

IBM 2025 customer PII, $160 per record

$5.39M

33,698 x $160

IBM 2026 customer PII, $192 per record

$6.47M

33,698 x $192

Method: individuals affected, as reported by Rainbow Children's Clinic to HHS, multiplied by IBM's customer-PII cost per record (Cost of a Data Breach 2025 Figure 6 and the 2026 edition). No cost has been disclosed by the entity for this filing; the figure is a planning estimate, not a fact about the breach. IBM's per-record figures come from mid-volume breaches and IBM cautions against applying them to breaches involving millions of records; the site's per-record page explains where the multiplication holds and where it breaks down.

Context: IBM's average cost of a healthcare breach is $6.64M in the 2026 report ($7.42M in 2025); the global average across all sectors was $4.44M in 2025.

Cost per record: method and limits / Healthcare breach cost, IBM 2026

Section F.6 / Notification clock

Texas statute and the HIPAA rule

State notification statute

Texas: Tex. Bus. & Com. Code 521.053

Notice to individuals
Without unreasonable delay, no later than the 60th day after determining a breach occurred
Attorney general threshold
250 or more Texas residents (No later than the 30th day after determining a breach occurred)
Private right of action
Limited: Indirect recovery via the Deceptive Trade Practices Act (up to treble economic damages for knowing violations)
Penalty
$2,000-$50,000 per violation; additional up to $100 per individual per day, capped at $250,000 per breach

The HIPAA Breach Notification Rule runs alongside the state statute: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery.

Section F.7 / Peer filings

Texas filings closest in size

Neighbours by size rank among Texas filings in 2016, topped up from other years where 2016 has too few. Filings of 10,000 or more link to their own page.

Covered entityTypeIndividualsSubmitted
Medical Colleagues of Texas, LLPHealthcare Provider68,63111 May 2016
Eye Institute of Corpus ChristiHealthcare Provider43,96126 Feb 2016
Seguin Dermatology, Office of Robert J. Magnon, MDHealthcare Provider29,96930 Nov 2016
Integrity Transitional HospitalHealthcare Provider29,51414 Oct 2016

Index / Companion schedules

Provenance

Source: U.S. Department of Health and Human Services, Office for Civil Rights, Breach Portal (breaches affecting 500 or more individuals), retrieved 2026-08-28. Public domain. Individuals affected and dates as reported by the covered entity.

Portal: ocrportal.hhs.gov breach report. Statutory basis: HITECH Act section 13402(e)(4): the Secretary must post a list of breaches of unsecured protected health information affecting 500 or more individuals. Breaches affecting fewer than 500 individuals are reported to OCR annually and are not posted, so they are not on this register. Status wording follows the portal's two tabs ("Cases Currently Under Investigation" and "Archive") as of 28 August 2026; a filing moves to the archive when OCR closes the case. Modelled costs on this site are a method applied to the reported count, using IBM Cost of a Data Breach per-record figures, and are never a cost disclosed by the entity. This row: hhs-breach-archive__2026-08-28.csv, export row 5448.

Corrections: if you represent a listed entity and the portal row has been amended, email [email protected] with the portal entry and we will re-pull the export.