Ssn spring '16 final

Volume 13, Issue 1

spring 2016

Security Shredding News Serving the Security Shredding & Records Storage Markets

Visit us online at www.SecurityShreddingNews.com

ATTENTION: READERS !

Are you looking for Products, Equipment or Services for your business? If so, please check out these leading companies advertised in this issue:

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Equipment Financing TransLease Inc – pg 2

Lock & Locking Systems Lock America Intl. – pg 3

Mobile Truck Shredders Alpine Shredders Ltd – pg 6 Shred-Tech Limited – pg 7 Vecoplan, LLC – pg 9

New Trade Association Formed for Medical Waste Industry

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Moving Floor System Keith Manufacturing – pg 5

Stationary Shredders & Grinders Shred-Tech Limited – pg 7 Vecoplan, LLC – pg 9

Trade Associations NAID – pg 10 (National Association of Information Destruction)

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ocument destruction companies expanding into the medical waste industry and seeking a trade association voice much like they have with the National Association for Information Destruction (NAID), will soon have their wish come true.

The new nonprofit Medical Waste Management Association (MWMA), designed to serve medical waste transporters and processors, equipment vendors and healthcare professionals responsible for medical waste disposal, is scheduled to be up and running before the end of April.

“MWMA is a catalyst and advocate for safe and ethical medical waste disposal practices, as well as a resource for relevant and emerging industry information,” the organization says.

The new trade group was formed at the behest of NAID members, which include document destruction companies moving into the medical waste arena as well as medical waste haulers who have begun offering information destruction services.

“We’ve definitely seen a lot of new NAID members who have entered the information destruction business who were only in the medical waste hauling business,” notes Bob Johnson, chief executive officer of NAID. “So not only do we have companies who are in the shredding industry getting into the medical waste business – the ones who brought this to NAID and said, ‘Will you help us?’ – but we also noticed at the same time that many medical waste management companies were getting into the information destruction industry.”

NAID helped form the new trade group, which will operate as a completely separate and independent organization. In the early going, NAID staff will help manage it to get it off the ground and Johnson will serve as acting executive director.

Six people, all in the medical waste hauling business and from states from California to Florida, will serve as an interim board of directors.

“The interim board will be in place until such time as there are enough members and the time is right to have an election,” Johnson says, predicting that it will be eight to 12 months before a board is formally elected. He also expects a permanent executive director to be named once the organization is big enough.

NAID members came to that organization’s board seeking help in launching a new trade

Continued on page 3

Inside This Issue

4

Equipment Focus: Balers

6

What a Shredding Company Can Learn from Jimmy Buffet

9

Community Mercy Health Partners Privacy Breach Affects 94,000

10 Law Gives New Jersey Organizations Options for Hard Drive Destruction 11 Product / Equipment Profiles

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Security Shredding News

New Trade Association Formed for Medical Waste Industry Continued from page 1

PUBLICATION STAFF Publisher / Editor Rick Downing

Contributing Editors / Writers P.J. Heller Megan Quinn Jay Wallus Sandy Woodthorpe

Production / Layout Barb Fontanelle Christine Pavelka

Advertising Sales Rick Downing

Subscription / Circulation Donna Downing

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group for medical waste companies, saying it would help their businesses.

“A lot of NAID members are getting into that [medical waste] business as part of what they do,” Johnson says, “They already service the medical industry in their information destruction needs, so they’re adding this service, often in a separate company to their business model. They came to the board of directors and said, ‘There’s no trade association doing for our industry on the medical waste management side what NAID has done on the information destruction side, and we think it would be very valuable.’”

That appeal for help was bolstered by concerns that medical waste haulers and processors could come under the same HIPAA (Health Insurance Portability and Accountability Act) regulations as the document destruction industry concerning protected health information.

“We’re now quickly approaching a time in technology . . . where DNA is able to be analyzed to the point where it’s going to be considered protected health information,” Johnson says. “And it’s only a matter of time, not very much time, before DNA has to be protected like every other type of information has to be protected. It is very personal and confidential and shows a lot [of personal information].

“I don’t believe it’s going to be very long at all before you’ve got medical waste haulers who are actually considered under the regulations as business associates under HIPAA,” he says. “The overlap there is amazing between what a NAID member does and what a waste hauler company does. They’re transporting confidential information. They are literally business associates under HIPAA. They would be subject to all the same things as NAID members are as business associates. In one respect they’re disposing of information just like the NAID member disposes of other types of information.”

Johnson says not many people see the connection yet, but predicts it is only a matter of time before medical waste falls under HIPAA guidelines.

“I don’t understand why it already isn’t considered as protected health information under HIPAA,” he says. “That is one more layer of justification why NAID got involved in forming this association.”

Once the MWMA goes live, prospective members will be able to join online or by calling the Phoenix, Ariz., headquarters and requesting an application, which can be mailed, faxed or downloaded and then mailed in.

Three categories of membership will be offered: medical waste transporters and processors, vendors to the industry such as manufacturers of autoclaves, shredders and vehicles, and medical waste practitioners who are responsible for the disposal needs of their organizations.

Unlike NAID, there are no plans at present to offer a certification program. That voluntary program “verifies the qualifications of certified information destruction providers through a comprehensive scheduled and unannounced audit program,” according to NAID’s website.

Offering a certification program for waste haulers would be up to the MWMA board, Johnson says, adding that it is too early in the process to discuss such an option.

Johnson says the MWMA will be a voice for the industry, provide education to members to improve their businesses and offer information to healthcare practitioners to help them make good decisions and better do their job when it comes to medical waste disposal.

“Every industry worth its salt has a trade association that acts as its voice in either state or local regulations,” he adds. “There could be a regulatory component or a regulatory voice.”

MWMA may also get involved in federal issues relating to medical waste.

“If there’s potential legislation, either negative or positive, that is going to effect medical waste haulers, MWMA would either be responding or commenting or attempting to act as an advocate for the industry,” Johnson says. “It’s important to recognize when such legislation can be helpful to the industry and promote it. There’s also the need to watch when that legislation could be damaging to the industry and when you’ve got to push back on that legislation.”

NAID currently has 30 percent of its membership outside North America and Johnson says it’s conceivable that the MWMA could also spread worldwide.

“I don’t think it’s anything that will happen soon but eventually it could transcend the borders of North America and move into other countries,” he says.

In the meantime, Johnson is hopeful that the new group will flourish. The MWMA will fill a void in medical waste transport services, as well as with the vendors that supply them and the professionals who are responsible for making disposal decisions “and that will translate into significant new membership,” he says.

“We have hopes . . . “ Johnson adds. “We expect to be welcomed into the industry.”

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Security Shredding News Spring 2016

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Security Shredding News

Equipment Focus: Balers Adaptable and energy-efficient balers with solid maintenance support can meet your current needs and accommodate new opportunities as markets shift.

By Megan Quinn

M

aybe you’re in the market for a new baler because of a catastrophic baler breakdown after years or decades of steady service. Maybe you need a more energy-efficient model that will churn out bales without eating up so much power, or perhaps one that will match your current volume of

material.

Whatever the reason, it might have been a while since you bought a baler.

After all, stationary balers are meant to last between 10 and 20 years, and some manufacturers say their balers can last 30 or more years depending on the type of material you run through them and how well you maintain them. Regardless of how long it has been since your last purchase, consider following these tips to ensure your next baler purchase is a good investment for decades to come.

Make Your Checklist

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s you browse the options, manufacturers and distributors advise you to keep in mind a short checklist of important questions: What materials will you be baling? Do you plan to switch among different types of materials? How often? Some balers work best when handling one type of material; others allow you to switch materials and grades more easily.

Recyclers “need to decide their production requirements, present and future, and what materials they plan to bale,” says a sales director for a baler manufacturer and distributor in California. Volume is another critical consideration, he says. What tonnage of material will you bale, and what rate do you need to meet? It’s important to envision not just your current volume, but what you think your volume will be in the future.

A spokesman for a baler manufacturer in Georgia puts it this way: During a sale, “one main question I ask is, ‘Where do you see yourself in five years?’ One baler might do five to 10 tons an hour. If you think that in five years you can do up to 10 tons, this might be the baler for you. If you want to expand to 15 [or] 20 tons an hour, then it is better to purchase a baler that will allow you to do so.”

In other words, it’s a good idea to purchase equipment that can do more than you actually need right now, says a sales representative for a baler manufacturer in North Carolina. The last thing you want is to purchase costly equipment that won’t be able to keep up with future demand, she says. “We advise customers to get a [baler that can do] a little more, whether it’s more capability to bale more or bale faster.”

Cost is another consideration. It might be smart to upgrade, but only if you think you can get your money’s worth from the baler that best fits your needs. In challenging economic conditions, says the North Carolina baler rep, many recyclers are cautious about spending their money on big-ticket items like balers, but they can feel more confident about spending the money on the necessary equipment once they find the right fit.

Versatility and Volume

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or their daily operations, most recyclers use horizontal balers, in which the ram compacts materials by sliding in from the side rather than from the top, as with vertical balers. The specific horizontal baler design that fits your needs will depend on how much material you have to bale, what characteristics the materials have, and how fast you need to make the bales.

Single-ram, open-end extrusion balers work best when you have high volumes of one type of material you need to bale quickly, manufacturers advise.

These machines can typically bale plastic, paper, and nonferrous metals. The baler compresses materials through a long extrusion chamber, creating the first bale, called the plug bale, then compressing each remaining bale against the previous bale. This process is great for pushing out large amounts of one type of material—productivity can vary from a few tons an hour to up to 40, depending on the horsepower put into it and the type of material, several manufacturers say. Yet extrusion balers are not ideal for producing one bale at a time or quickly changing the type of material—for example, from plastic to nonferrous metal or vice versa. “With a single-ram, you cannot take all the bales out of the chamber to make the next bale [when] you are changing grades or types of material,” the baler spokesman in Georgia says.

Single-ram, closed-end balers, sometimes called closed-door balers, in contrast, handle a variety of materials, from nonferrous metals to paper. Some models are

4 Security Shredding News Spring 2016

better than extrusion balers for handling stubborn materials, such as PET or HDPE, that have rigid memory, making them tough to crush, a Minnesota baler company says. Yet most of these closed-end balers have a much smaller throughput capacity than the extrusion balers. One Alabama baler manufacturer says its largest closedend model can do roughly 20 tons in a typical shift, and several other companies estimate between 1 and 2 tons an hour, depending on baler and bale size. The closed-end baler is one of the lower-cost models, which can start at about $75,000 and go beyond $110,000, some manufacturers estimate. Baler capacity and types of materials used to build the baler may factor into its cost, the North Carolina company spokeswoman says.

Two-ram balers can be the best of both worlds: They can bale large volumes and also bale different types of materials. The first ram presses materials against a steel wall instead of against the previous bale, and the second compression ram ejects the finished bales from the chamber. The machine can make tighter and more uniform bales, the Georgia baler spokesman says. The two-ram baler is “a terrific product for multiple grades of material. A recycling facility may run PET for an hour, sweep the baler out, and start running aluminum cans,” he says. “When you’re done with the bale in the two-ram, you can push it all the way out.” This versatility and volume come at a higher cost, however. Without any attachments or accessories, a narrow-box two-ram baler can start at $250,000, with a wide box costing $450,000 to $500,000 or more, according to various manufacturers.

Recent Improvements

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anufacturers say balers have not changed dramatically in the past 10 years, but several key features have definitely improved, such as energy efficiency and higher baling pressure. Energy efficiency is critical when energy costs are a big slice of scrapyards’ expenses. The newer models likely have improved energy efficiency, even if the rest of the baler might look similar to older models, the California baler distributor says. One Connecticut-based baler producer says it offers a model that will cut energy costs in half compared with “traditional” two-ram baler models, while the Georgia baler spokesman says its machine “does more with less power now.”

“Motors today that turn the pumps are more efficient than they were five, 10 years ago,” he says. Some newer-model power units, for example, “have two 75-hp main motors that save power on start-up by starting one 75-hp motor at a time instead of a single 150-hp main motor. The two-motor systems also allow the power unit to use only one motor instead of two during times when production is low, which is meant to save energy costs.” It’s also worth asking about the actual performance, not just the horsepower, he adds. Some manufacturers “use a motor that may be labeled 100 hp but can pull amps like a much larger motor.”

Newer models also might offer higher compression forces than models from 20 years ago, these experts say. Older machines had an operating pressure of about 3,000 to 4,000 psi, for example, but newer machines can create 4,000 to 5,000 psi at their maximum operating pressure in both single- and two-ram models, several manufacturers say.

What Not to Do

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shiny new baler won’t stay reliable for long when you don’t use it correctly.

Unfortunately, some manufacturers say they have seen abuse of balers—neglect or actions that shorten the machine’s life span, rack up easily avoidable repair costs, and potentially put operators in danger.

Trouble sometimes starts when companies switch from processing one type of material to another. Switching between commodities and grades is hardly uncommon, but be sure your baler can handle all the materials you plan to bale.

Even though many balers have computer-control systems that can calibrate the equipment to the proper conditions for different materials, operators still need to feed the baler properly to get maximum production and avoid problems, the California sales rep says.

The Georgia baler spokesman says he often sees companies change the materials they bale, sometimes because of new business opportunities. It can be good for business in the long run, but it also can be hard on the baler. “When you

Continued on next page

Security Shredding News Continued from previous page buy a baler to do nothing but [OCC], but, suddenly, say you get into the nonferrous metal business and are baling up structural aluminum or something else that is definitely not [OCC], you will damage the baler. I had a customer who started baling insulation, which was never talked about during the sales process. Insulation is very abrasive and ate the liners out much quicker than cardboard would,” he says.

Some operators tinker with the baler settings to get more out of a baler’s performance. That could backfire when those adjustments push the limits of what the baler can handle, such as when “people turn the pressure up for heavier bales when the system was only designed to go to a certain level,” he says.

Talk in depth with baler companies to make sure the materials you work with every day won’t cause problems for the new machine you’re considering—and when conditions change at your yard, consult with the manufacturer or a certified repair technician to make sure your baler can handle any new demands.

Safety also is a major concern, baler manufacturers say. Misusing the baler on materials it wasn’t designed to handle, filling it too full, or rushing to fix a jam can lead to major injuries and death. Newer models with upgraded safety features, such as redundant safety checks, could be both a timesaver and a lifesaver. For example, the North Carolina sales rep says her company’s new baler boasts a unique design that allows operators to clear jams by pushing a button outside the machine instead of going into the baling chamber. “We definitely take safety into consideration, first and foremost,” she says. “Jamming is definitely a common problem, and people climb [into the baling chamber] to fix it. Then they have downtime and loss of production” while the baler is locked out, or they rush to clear the jam and take shortcuts that can create safety risks, she says.

Maintenance and Repair

POWERFUL

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eeping balers in tip-top shape will help prevent accidents, too, this representative adds.

Routine preventive maintenance also can help you avoid problems that can lead to unscheduled downtime. Finding a model that is easy to maintain and comes with good maintenance support, either from the manufacturer itself or a certified technician familiar with your model, can make such efforts easier.

When zeroing in on a baler that is right for you, ask about the maintenance needs of specific models, such as whether they have readily available parts in case something needs replacing. Several manufacturers say they make their own parts in-house, so customers can rapidly order and receive needed replacements and avoid having too much downtime. Does the company have a good warranty and easily accessible service support? Warranties can vary slightly. One Alabama manufacturer warrants that its new horizontal balers will be free from defects for one year or 2,000 hours of service, for example, while a different Alabama manufacturer’s horizontal baler has a one-year warranty, parts and labor, but does not mention hours of service.

Several baler companies say they pride themselves on having responsive repair departments that can dispatch a knowledgeable technician when there’s a problem. This has become especially important during the current tough economic times, the Georgia baler spokesman says, because many scrapyards are choosing to make more repairs on their existing balers rather than purchase new equipment.

“Our dealers are doing a lot of repair work right now,” he says.

Routine maintenance is another cost, but experts say scrapyards cannot afford to skip it, even in lean times. Several baler companies say they give detailed instructions in the baler’s user manual for daily, weekly, or monthly checks or actions. Someone from the manufacturer or an authorized dealer also should visit for a regular check, which includes checking the oil and examining electrical components, pump pressure gauges, filters, and liners.

Check with your baler company to find out the cost of such checkups. One baler manufacturer says its maintenance could be about $500 for an authorized dealer to “check everything front to back” on an annual basis, which includes testing oil, changing filters, looking at the liners, checking hydraulics, and other services.

Most manufacturers declined to give an estimated cost for typical maintenance, however, saying the cost can vary widely based on the type of baler you have, the environment where the baler operates (inside, outside, or in particularly dusty conditions), and whether you live in an area where costs are higher than other regions of the United States.

Most of those variables, as well as the amount of time you spend running your baler and the types of materials you bale, factor into how frequently you should conduct routine maintenance checks, the Georgia baler spokesman says. “If you have a nice, clean warehouse, maybe you do this once a year, but in applications where you have a dirty environment, you might do it quarterly.”

Megan Quinn is reporter/writer for Scrap. This article originally appeared in the January/February 2016 issue of Scrap magazine. Reprinted with permission.

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Security Shredding News Spring 2016

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Security Shredding News

Buying Used Balers

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hen money is tight, the thought of replacing a baler can lead to some stressful budget calculations. That’s why some baler sales reps say they are getting more inquiries lately about whether or not a used model can do a good job at a lower price. Many of the same guidelines apply when you’re purchasing a used model as when buying new: Look for the models that can handle your present and estimated future tonnage and that are suitable for the types of materials you regularly bale or plan to bale in the future. Also ask about what kind of repair coverage you can get and whether parts—and technical expertise—are available, a North Carolina baler manufacturer says. The price difference between new and used balers depends on the size of the baler, its age, and what shape it is in. “Sometimes you can find a really good older baler that works better than a newer model. Perhaps it was built with higher-quality materials,” she says.

Used balers can save you money, but there is a downside: hidden wear problems. As a North Carolina baler company rep puts it, “We [refurbish] the used equipment that we sell, but we only offer a warranty on new equipment because there is just no way of knowing what the used equipment has been through in its life.”

What a Shredding Company Can Learn from Jimmy Buffet

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By Jay Wallus

ou might be a fan of his and if you are, you probably own a whole bunch of his “accessories” and have even visited one of his many watering holes around the United States … This guy really gives ‘em what they want … and has developed a huge empire because of it.

Yes, my Parrot Head friends ... it’s none other than Jimmy Buffett. The Margaritaville king himself. Now, I know what you’re probably thinking: What the heck does Jimmy Buffet have to do with selling shredding service?

A whole lot actually.

First of all, Jimmy Buffet is a phenomenal salesman and marketer. He knows exactly what he’s selling, and it isn’t just music. His following of fans want to leave their troubles behind somewhere else and live his laid back lifestyle even if it’s just for a few hours.

Speaking of that supposed lifestyle ...

Do you know where Jimmy Buffet lives? Key West? Bermuda? The Bahamas?

Aruba? Wrong, wrong, wrong and wrong again … He lives on Long Island, N.Y. How’s that for a shocker? Now let’s dissect this lifestyle/feeling he’s marketing/ selling … and let’s start by looking at some of the lyrics from his most famous song … Margaritaville; Nibblin’ on sponge cake, watchin’ the sun bake; All of those tourists covered with oil.

Strummin’ my six string on my front porch swing.

Smell those shrimp-They’re beginnin’ to boil.

When someone listens to this song, they go right to the place that he wants them to; a place of rest and relaxation, where they’re not used to spending a lot of time in their usual day-to-day grind. That’s exactly what most people want and/or dream of doing. His persona (and what he’s actually selling) is his seemingly carefree lifestyle, on some obscure Caribbean island, not worrying about anything.

In actuality, he’s building more of his famous watering holes aptly named Margaritaville (where of course it’s always 5 o’clock) already located in Key West, New Orleans, Las Vegas, Myrtle Beach, Orlando, Cancun and Charleston, South Carolina. Here’s a quote taken directly from the Margaritaville website: “Visiting a Margaritaville Cafe is an experience unlike any other ... it’s not just a dining destination, it’s an entire change of latitude. Whether it’s the Jumbies on stilts, the volcanos erupting with margaritas, the pool slide that wraps around the bar, or the frozen concoctions, a trip to Margaritaville will not soon be forgotten.”

All of the above text screams one thing and one thing only…if you come here, you’ll have a great EXPERIENCE! Forget all your problems and come down and drink (EXPENSIVE) margaritas with us …!

Jimmy’s also leveraging his trademarked Margaritaville by licensing it to blenders (called the Frozen Concoction maker - of course), food (Margaritaville Chicken Wings), beer (Landshark Lager) and the usual assortment of hats, t-shirts, flip flops glasses and posters. He’s even got a Parrot Head radio station on Sirius radio …

Want to see how he perfectly uses the whole “build a community that your

Continued on next page

6 Security Shredding News Spring 2016

In the News Continued from previous page customers can belong to” that I’m always preaching to you about..? Go to www. margaritaville.com and click on the “Play” and then “Travel adventures”. Look at the happy people drinking Margaritas wearing their Jimmy Buffet gear … they even have a Parrot Head of the Month Club.

Now ... your lesson. You don’t have to go around the country building bars or licensing your name to drink mixers.

But wouldn’t it make sense to actually MAKE IT ENJOYABLE to be your customer? It doesn’t cost a lot to add a little fun to your shredding customer’s day by sending them something that will help them through their day and/or put a smile on their face.

A simple phone call and a note of appreciation to them every once in a while is a great start.

Jay Wallus is an “in the trenches” salesperson in the shredding industry with an unusually creative mind when it comes to marketing to his prospects and clients. He’s happy to help others in the shredding industry by sharing what he’s developed. He can be reached at jay@jaywallus.com.

Port Arthur Honors ArmorShred

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ort Arthur, TX – The Greater Port Arthur Area Chamber of Commerce has recognized, woman-owned ArmorShred as its Small Business of the Year, according to PANews.com.

The ten-year-old, minority women-owned company serves Texas and Southwest Louisiana with mobile shredding services and secure electronic media disposal.

The company operates two high volume shred trucks and destroys more than 150,000 pounds of paper monthly, all of it recycled back into another paper product.

The destruction of documents and storage media has represented an evergrowing market for ArmorShred, whose operations have been exemplary while larger companies have been investigated for security breaches and fraud.

Illinois E-waste Programs Successful, but Costly

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aukegan, IL – After May 1, residents here will have to dispose of their old computers and other electronic devices someplace other than the Solid Waste Agency of Lake County’s (SWALCO) five drop-off sites, reports ChicagoTribune.com.

The state’s e-waste program’s success — which totaled some 4 million pounds collected annually — seems to have contributed to its undoing. The County simply cannot afford to do free collection of household electronics at a volume that shows no sign of decreasing.

“The agency was faced with an unanticipated mandate to pay for collecting electronics, and regrettably we cannot afford to pay more when we are already providing nearly $150,000 per year in manpower and equipment at the five collection sites,” SWALCO Chairman Larry Mount said in a statement.

“Lake County residents have created the largest and most successful electronics collection program in the state. We are very proud of the program, and to see it likely come to an end is very disappointing,” said SWALCO executive director Walter Willis. “It is our goal to work with the other stakeholders, including the electronics manufacturers and recyclers, to develop a more sustainable program so that our residents are able to comply with the law, which currently bans 18 items from the landfill, including TVs.” In 2014, three collection sites were shut down, but SWALCO was able to continue funding e-waste collection at its remaining sites by spending $200,000 in reserve monies.

According to a county recycling spokesperson, nearly one-fifth of SWALCO’s $1 million budget went to electronics recycling costs last year. Principally, it’s tipping fees and transportation costs in getting the electronics to the drop-off sites that can become expensive for local governments. SWALCO would like electronics recycling available at no cost to governmental bodies charged with waste-hauling and landfill issues.

Similar electronics recycling issues have been occurring in other parts of the state. Will County, which once had 13 electronics recycling sites, closed all remaining sites as of March 1, according to its website.

www.shred-tech.com

Security Shredding News Spring 2016

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In the News Electronic Medical Record Vulnerability Comes Under Closer Scrutiny

S

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pringfield, OH – According to a SpringfieldNewsSun.com article, hacking into healthcare systems is on the rise and federal records of breaches indicate that one in three Americans had their personal health information exposed in 2015.

This vulnerability has prompted U.S. Department of Health and Human Services’ Office of Civil Rights to put more teeth into Health Insurance Portability and Accountability Act (HHS, HIPAA) rules. Stepped up investigations and fines and an increase in preemptive oversight through audits are underway.

In September of 2015, the HHS Inspector General issued a report that criticized OCR for not being proactive enough in preventing privacy breaches.

“OCR oversees covered entities’ compliance with the privacy standards primarily by responding to complaints, tips or media reports of possible noncompliance,” the report said.

Last year saw a record 57 large breaches, including four of the five largest breaches in the U.S. -- all resulting from hacking into network servers. One such breach affected about 78.8 million Anthem customers nationwide – plus some five million individuals in Ohio.

More than 1,400 large breaches involving records of more than 500 individuals, affecting more than 155 million people have been reported since the enforcement of HIPAA rules. The OCR has also investigated more than 125,000 smaller breaches and complaints; however, the federal government has levied fines only 31 times.

“Small” breaches, especially those involving human error, such as faxing or mailing personal financial or health data to the wrong number or address, are harder to track. Those that are reported to the fed tend to go unnoticed because OCR does not make them public.

The Health Information Technology for Economic and Clinical Health Act (HITECH) went into effect in 2010 and mandated that OCR create an audit program within one year. The agency conducted its first pilot in 2012, auditing about 115 companies.

In its response to the September report, OCR described a permanent audit program that the agency was preparing to roll out 2016, but also noted a lack of resources to implement all the new requirements under the law.

Many in the industry point out that big data and health care have only been synonymous for about the past five years, meaning the systems and enforcement are still growing and maturing.

The largest settlement agreement reached by the federal government in a HIPAA violation case came in 2014 when New York Presbyterian Hospital and Columbia University agreed to pay a combined $4.8 million after failing to secure a network server. The medical records of 6,800 individuals were exposed on the Internet.

(Courtesy of Springfield News Sun) Largest HIPAA privacy breaches in the U.S. (listed by number of individuals affected)  78.8 million — Anthem network server hacked, 2015.  11 million — Premera Blue Cross network server hacked, 2015.  10 million — Excellus Health Plan in New York hacked, 2015.  4.9 million — Science Applications International Corp. breach due to loss, 2011.  4.5 million — University of California, Los Angles Health network hacked, 2015.

By the numbers:  1,475: Breaches affecting more than 500 individuals reported since 2009.  100: Entities with more than one large breach on their record, including Community Mercy Health Partners with two in 2015.

www.chachkagroup.com chachka@chachkagroup.com

8 Security Shredding News Spring 2016

 6: Breaches in past five years at both Walgreens and StayWell Health Management.  113,528: Records exposed in a November Community Mercy Health Partners breach, according to federal data.

In the News One-bin Paper Community Mercy Health Partners Privacy Recycling Product Breach Affects 94,000 Not Worth Recycling, pringfield, OH – Community Mercy Health Partners’ Springfield Regional Medical Center has mailed notifications to some 94,000 patients whose health records were found last Thanksgiving in a Springfield Buyers Say public recycling dumpster, reports a WHIO.com article.

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A citizen who discovered the documents in a dumpster located at the Clark County Solid Waste District’s uyers surveyed by Institute of Scrap North Recycling Station called the Springfield Police Department, which called the hospital.

Recycling Industries (ISRI) say that CMHP, part of the massive Mercy chain that’s the eighth largest employer in Ohio, invests heavily in mixed waste processing systems result in state-of-the-art cyber security systems. The dumpster incident forced the hospital to examine scanning, storage poor quality fiber for manufacturing new paper, a and disposal operations, however. Most of the health documents that had been dumped were dated from 2005 RecyclingInternational.com article reports. and 2006 and had come from the since-closed Community Hospital in Springfield. Confidential information The newly released recovery industry trade included patients’ names, physicians’ names, accession numbers, types of study, guarantor information, health association’s survey reveals that 70% of the fiber insurance information, diagnoses, other clinical information, and in some instances, Social Security numbers buyers find the quality of material originating from and driver’s license numbers. “one-bin” collection sites tends to be worse than According to a Community Mercy statement, CMHP employees immediately went to the recycling site, most other recovered paper. Furthermore, 90% of retrieved all the documents in the dumpster, and began an internal investigation. The investigation determined those mill buyers have had to downgrade or reject that a CMHP vendor had inadvertently disposed of the lab records in the dumpster on November 25, 2015. the paper from the mixed waste processing centers As required by Health Insurance Portability and Accountability Act (HIPAA) rules, CMHP filed a breach more often than recovered paper from ‘regular’ report with the U.S. Department of Health and Human Services Office of Civil Rights, published a public notice material recovery facilities. about the breach and has mailed notification letters to 94,000 patients. The number of individuals affected by One survey question asks whether ISRI the breach is much lower, Community Mercy said, because in many cases multiple records belonged to the same specifications should stipulate that paper recovered person. A hospital spokesperson clarified that not all CMHP patients were affected. A dedicated call center was from one-bin programs should be separated in set up for patients to call with any questions, as well. mixed waste processing. The majority (62%) of The Springfield breach was Ohio’s largest since tracking began in 2009, according to federal data. It was respondents indicated such product “is not fit for also the third-largest improper disposal case in the nation and the fifth-largest involving paper records. use in USA paper mills.”

CMHP says it has reviewed document storage locations, significantly reduced or eliminated retention of paper For the 75% of respondents who opt not documents and re-educated its facilities management contractors on storage and relocation. The hospital also to purchase recovered fiber from mixed waste no longer Security centers, Shredding & Storage - 1/2 page, 4C contracts with the individual responsible for the latest breach. In addition, the hospital has increased processing the following reasonsNews were cited: education for employees and improved signage regarding proper disposal of documents. contamination; odor; low quality; higher levels of A previous breach occurred in the spring of 2015 when the CMHP inadvertently sent invoices for about “prohibitives and outthrows” (contaminates); 2,000 patients to wrong people. The statements contained names, addresses, billing codes such as diagnosis purchase prevented by internal quality standards; and procedural codes, service dates and locations, and account balances. No social security numbers or other too risky; excessive moisture; and quality “will not personal financial information was exposed, according to the hospital. A spokesperson said the hospital system meet the mills’ customers’ needs.” has re-educated its employees on scanning documents then properly destroying the physical copies after 90 days.

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Security Shredding News Spring 2016

Destruction Equipment

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In the News Pennsylvania Counties Suspend E-Waste Law Gives New Jersey Organizations Options for Recycling, Take-Back Law is Examined Hard Drive Destruction ilkes-Barre, PA – In a move that includes shutting down three e-waste drop-off sites,

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Wayne, Schuylkill and Luzerne Counties are suspending electronics collections for the rest of 2016, according to a CitizensVoice.com article.

In the Philadelphia area, five more counties have discontinued their electronics recycling programs.

The reasons cited for the suspensions include increased costs and declining recycling markets and, in Luzerne’s case, fewer recycling vendor choices.

Luzerne County has collected electronics for recycling since 2003, and brought in more than 6 million pounds of electronic waste material for recycling. The 2015 program collected 800,000 pounds of electronic waste.

The county’s website lists several companies that will recycle items, including DMS Shredding and The Salvation Army in Hanover Township, Cartridge World in Pittston, and Best Buy and Staples in Wilkes-Barre Township. DMS Shredding has issued a list of recyclable products it will accept, according to the county’s recycling manager.

Pennsylvania’s Covered Device Recycling Act of 2010 spells out the requirements for the manufacture, sale and disposal of covered electronic devices; however, Pennsylvania’s Department of Environmental Protection (DEP) leaves it up to counties on whether they want to have an electronics recycling program.

The law does specify that manufacturers selling products in Pennsylvania must offer covered device collection at no cost to consumers, among other requirements. Although the law restricts retailers to selling covered devices labeled with a brand registered with DEP, the retailers are not required to offer device collection, but if they do, they can’t charge a fee unless they also offer some kind of coupon or rebate.

At least one retailer, Best Buy, has curtailed collecting televisions and computer monitors in the state because of the law. Best Buy still accepts smaller items, said spokeswoman Maggie Habashy.

The law also made it illegal to dispose of electronic covered devices with regular household trash, meaning consumers need to find proper recycling.

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ew Jersey Governor Chris Christie recently signed PL 2015, c. 188, a law removing the state’s restriction on mobile hard drive shredding thereby providing the region’s businesses with more options by which to meet their data protection requirements.

The state’s actions mark the culmination of a one year campaign to remove what many considered an arbitrary limitation.

“We were first approached by Guardian Data Destruction, a New Jersey-based NAID member who had already had done considerable groundwork on the initiative,” said NAID CEO Bob Johnson. “When Guardian made us aware of the opportunity for meaningful change, there was already considerable momentum behind it.”

According to Dag Adamson, Founder of Lifespan, a U.S. and Canadian IT asset disposition/data destruction services provider and leader of the NAID Task Force assigned to direct the initiative, New Jersey businesses are the ultimate beneficiary.

“NAID applauds the actions of the New Jersey lawmakers in providing their constituents with more discretion in deciding what hard drive destruction solution is best for them,” said Adamson. “As a result, they now have more than 20 mobile data destruction service providers to choose from, where before they had only a few.”

The new law does require service providers to be NAID AAA Certified, which was included at the insistence of lawmakers to validate certain vendor qualifications. There are currently an estimated 24 service providers capable of providing NAID Certified mobile destruction on hard drives to New Jersey customers.

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Advertiser News Access Expands in Oregon with Acquisition of EnviroShred NW

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ivermore, CA – Rob Alston, CEO of Access, recently announced the acquisition of EnviroShred NW, Inc., a secure document shredding company located in Portland, Oregon. A leading provider of records and information management solutions, Access delivers a full suite of services based on its mission to advance how the world manages information with the very best service. The acquisition of EnviroShred NW is the company’s 97th since its founding in 2004.

To ensure delivery of the very best services, the company remains alert for opportunities to expand its offerings to both existing and prospective clients. As explained by Access President, John Chendo, “This acquisition enables us to better serve our clients throughout the Northwest region, and we are excited about the additional business growth opportunities it will create.”

Schutte-Buffalo Opens New Size Reduction Test Lab Facility

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uffalo, New York based manufacturer of size reduction equipment Schutte- Buffalo is pleased to announce the opening of their newly constructed test facility. The new lab featuring a Dual Shaft Industrial Shredder, Pneumatic Discharge Hammer Mill, and Laboratory Scale Gravity Discharge Hammer Mill is able to determine the size reduction capabilities of a wide array of materials incorporated in the industries of: Agricultural Products, Bulk Solids, Recycling, and Wood Processing.

This testing is offered as a complimentary service to existing and potential SchutteBuffalo customers. Upon completion, the customer will receive photos of the processed material, a sieve analysis, explanation of the feasibility of meeting their production goals, and a detailed proposal for the size reduction equipment recommended for achieving those goals. In addition, customers are welcome to witness the testing at the facility first hand.

Vecoplan, LLC Christens New Test Lab Shredder Testing On Your Materials

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ecoplan, the worldwide leader in size reduction technology, recently christened their new state-of-the-art test lab. An integral part of Vecoplan’s continuing expansion, the lab serves two functions vital to Vecoplan’s long-term goals. “First it provides a practical hands-on environment to test the feasibility and ensure the quality of our R&D efforts,” states Gary Kolbet, VP Engineering at Vecoplan, LLC. “But just as important, the test lab is set up to provide real world conditions in which customers can view their own waste materials being processed - from feeding, through shredding and discharge/separation” adds Bob Gilmore, Vecoplan’s CSO. The new test lab contains a representative selection of four of Vecoplan’s most popular shredders and a plastics granulator. The lab is also configured with an open slot to allow for the installation of other machines on an as-needed basis.

Other amenities in the lab include customer-viewing stations with built-in windows, located at key processing points on each shredder.

Cameras positioned above each shredder’s hopper provide live video feeds of materials as they are being processed in the cutting chamber.

Video can be viewed on the lab’s LCD monitor and recorded for the customer on USBs, DVDs or CDs. According to Len Beusse, COO of Vecoplan, LLC “the decision to invest in a test lab of this caliber was based on customers’ desire for precise size reduction solutions involving direct testing of their exact materials and demonstration of the exact shredder models they are purchasing”.

Product/Equipment Profiles V-ECO Shredder Controls Optimized for North America

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WEIMA Introduces WLK4 Single-Shaft Shredder

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ecoplan LLC has reengineered the control panels on their V-ECO shredder series, optimizing them for the North American market.

Dubbed REV 11C, the new panels incorporate features derived from customer feedback.

UL & CUL listed, REV 11C panels meet Safety Category 3 and Performance Level D standards.

Operated through HMI (Human Machine Interface) touch screens, intuitive function controls are extremely user-friendly.

Equipped with PowerFlex® 525 & 755 variable frequency drives, the panels also incorporate a Complete Ethernet Communication Suite maximizing communication speed between drives and PLC. This also enables quick and easy reprogramming or reconfiguring through one external connection port. Upgraded to CompactLogix Control Processors®, the new control panels can be quickly and easily integrated into existing plant wide automation systems.

Mechanical innovations on V-ECO shredders include: Variable Frequency Inverter Drives, “W” Rotors Embedded with 5 Rows of Cutters, Single or Double Rows of Bed Knives, Gas Shock Assist Drop Down Screen Carriages, Hydraulic Lift-Up Cutting Chamber Floors, and Externally Adjustable Cutting Tolerances.

he WEIMA WLK 4 singleshaft shredder, is a versatile machine, equipped with a V-Rotor, is able to process hard plastic scrap up to about the size of a bowling ball.

Larger models within the WLK Series can also be equipped with an F-Rotor, which is ideal for processing film and fiber applications.

To o o f t e n , p l a s t i c s c r ap i s discarded instead of recycled because it is too large to be fed into a granulator.

The WLK4 can eliminate this problem by pre-shredding the material to a consistent particle size in order to be introduced into a granulator for further processing.

Once the material is processed, the granulate can be reintroduced into the material stream. This cuts back on the amount of virgin material that a company must purchase.

For more information contact Vecoplan at 336-861-6070 or info@VecoplanLLC.com or visit www.VecoplanLLC.com.

For more information contact WEIMA at 888-440-7170 or info@weimaamerica.com or visit www.weimaamerica.com.

Security Shredding News Spring 2016 11

www.certifymerecycling.org info@certifymerecycling.org