Death by PHI? Verus-Tech

[swazal]

Following recent data spills (http://news.google.com/news?hl=en&ned=&ie=UTF-8&q=verus) Verus-Tech's primary funding source has reportedly pulled out, leaving only the option of shuttering operations, terminating staff and telling customers to remove links to hosted sites.

Is this the first death of a company by PHI? Also, rumor has it that another hosting provider is set to take over customers. Anybody know who?

[Burger]

My understanding is that the PHI issue certainly hurt Verus, but their business wasn't doing that well even before the release of information happened. A growing, profitable company can survive an operational error that was mostly just embarrasing (no indication that any patients/persons were harmed by the leak of a little financial info).

[swazal]

I agree that a healthy company could sustain a small spill. However, the cost for credit checking services is only one part of the equation. The potential of losing customers affected by an event (Concord (http://www.concordmonitor.com/apps/pbcs.dll/article?AID=/20070611/REPOSITORY/706110383/1043/NEWS01), Stevens (http://www.mukilteobeacon.com/6607stevens.html), Kennewick (http://www.kvewtv.com/news/?sect_rank=2&section_id=3&story_id=2530)) presents the greater risk to even a healthy company. If Verus was having difficulties, a significant breach could be the tipping point to disaster.

Which brings me back to my first question: Can anyone name a healthcare company brought down as the result of a data spill or is the first?