Vendor Management Lessons from Aetna’s $20 Million Lawsuit
You likely use third-party vendors to outsource your payroll, HR or IT infrastructure — all essential business functions. Unfortunately, in doing so, you’re giving multiple companies access to sensitive data, including private patient or customer information. In the event of a breach or leak of said sensitive information, it’s important to know where the chips fall and what liability you’re assuming when you outsource business efforts. Let’s take a look at how outsourcing significantly impacted the health insurer Aetna to assess opportunities and risks involved with hiring a third-party vendor. Aetna’s settlement If you’re unfamiliar with the backstory, Aetna made news for paying about $20 million in legal settlements from a case in 2017 concerning privacy violations of about 12,000
