A recent report developed by the Ponemon Institute concluded that the cost of Healthcare data breaches continue to remain the highest out of any industry, with the average cost being $380 per record. For all other industries, the average cost per record is $141, meaning that a breach of healthcare data costs 2.5 times more than the global average across other industries.
The US has a higher breach cost compared to Europe, which has shown a decline of 26% in cost year-to-year. This is due to the centralized regulatory environment in Europe, unlike in the US where organizations must adhere to federal and individual state regulations, making the response to an attack demanding and expensive.
The rise in breach cost can also be explained by the occurrence of HIPAA compliance violations and companies rushing to notify customers. The cost of issuing a notification of a breach alone is an average of $690,000 in the US which is twice that of any other country. The involvement of third parties, or business associates, in the breach also bumps up the cost by an additional $17 dollars per record.
Preparation Leads to Potential Savings
Data breaches are extremely costly to an organization as well as dangerous to affected individuals whose most personal information is affected. Regardless of the growing threat of breaches and increase of the cost of HIPAA Compliance fines healthcare organizations often overlook the significance of precautionary methods for protecting devices that contain patient data.
When an organization is able to craft and implement management plans for breaches prior to one taking place it is then able to respond and contain the breach in a more efficient manner, saving about $19 per record. Within the limit of a 30 day response time, organizations could expect to save $1 million. However, on average it takes around 6 months for companies to discover they have fallen victim to a data breach and oftentimes more than 60 days to manage the breach.
With so many healthcare professionals using cell phones, computers, IPads, or any other mobile devices to manage, share and discuss patient information, it is exceptionally important to do so by a secure means. Along with implementing management plans, and other security precautions such as updating software and hardware and training employees on HIPAA rules, it’s beneficial to also incorporate a secure and convenient communication solution like HIPAA-compliant mobile messaging.
Lua offers an easy-to-use communication solution with built-in security features to aid in HIPAA compliance and serves as an excellent preventative measure for communication violations and breaches. Learn more about how investing in a secure messaging platform like Lua can help protect your organization, providers, and patients.