I work for a home health care agency, to remain nameless, as a nurse. I have a fellow co-worker who lost some patient iformation that was paper form with Personal information on it. She was fired for it and is being denied unemployment stating it was "misconduct." She reported the incident right away and wasn't being malicious with information. Is this proper follow through for such a situation?

As a patient and not a Nurse - yes, it's acceptable follow through. Part of her job is to secure personal and confidential information. The home health care agency is protecting its tail in the event this is reported as a HIPAA violation (which, by the way, it is).

Is this person an RN, a CNA, something else?