Do HIPAA penalties apply to offshore business associates?

The recent breach at Cogent Healthcare, in which an India-based transcription service exposed data on 32,000 patients when its firewall was down, illustrates the problem of HIPAA compliance among business associates (BA) outside the United States.

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From: http://www.fiercehealthit.com/story/do-hipaa-penalties-apply-non-us–offshore-business-associates/2013-08-14?utm_source=rss&utm_medium=rss