A Children's Hospital of Philadelphia laptop computer containing Social Security numbers and other personal information for 943 people was stolen from a car outside an employee's home on Oct. 20. The billing information on the computer was password-protected, but an analysis found it was "possible to decode the security controls on the laptop and gain access to the personal information."
Children's Hospital is providing the affected families access to a service that monitors for signs of identity theft and includes identity-theft consultation and restoration.
MIAOULIS NOTE: ENCRYPT, notice the article does not mention encryption. HITECH clearly states that password protection does not offer a safe harbour for breaches.