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Medical IT Contractor Folds After Breaches
Written by Daniel   
Thursday, 16 August 2007 11:08

Medical IT Contractor Folds After Breaches
Blamed for privacy breaches at five different hospitals, Verus Inc. silently closes its doors
AUGUST 15, 2007 | 5:58 PM
By Tim Wilson
Site Editor, Dark Reading

Verus Inc., the IT contractor that has been implicated in security breaches at at least five different hospitals across the country, has gone out of business.
The Bellevue, Wash., company, which built and maintained Websites and services on behalf of some 40 to 60 hospitals nationwide, was disbanded "eight to 10 weeks ago" when investors pulled the plug following a massive blunder that exposed many of its clients' data to the outside world, according to an executive at MedSeek, an IT contractor that is now handling many of Verus' clients.

While reports of the breaches have been issued in dribs and drabs, all of the data losses can now be attributed to a single incident, in which Verus employees left a firewall down following the transfer of data from one server to another, according to David Levin, vice president of marketing at MedSeek.

"All of the breaches were the result of an IT error, as opposed to any problems with the software," Levin says. "They made a huge mistake, and it literally shut the company down. It's really a cautionary tale."
Verus's Website has been pulled down, and calls to the company's offices are referred to MedSeek customer service. No announcement of the shutdown, nor any explanation of the reasons behind it, appear to have been issued to the media or to Verus partners.... More

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