Four Medical Records Companies Facing Class Action Over Search/Retrieval Fees

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A proposed class action lawsuit filed against four medical records companies seeks to recover search and/or retrieval fees the case alleges totaled more than the labor costs for responding to the requests, and were thus charged in violation of federal law. The lawsuit against Acton Corporation, IM Records, Inc., Pro Impact Physical Therapy & Sports Performance, LLC and Med-South, Inc. argues the companies are considered “covered entities” under 45 C.F.R. § 164.524(c)(4) of the Code of Federal Regulations, which governs access to protected health information. According to the lawsuit, the defendants, as covered entities, have charged an illegal $5 search and retrieval fee on each medical records request received since 2009, when the aforementioned health information law was enacted. The case estimates the defendants have collectively charged and accepted more than one million search and retrieval fees since that year.