Health Information Management

Cost of HIPAA breaches nears $1 billion

HIPAA Weekly Advisor, August 16, 2010

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Covered entities and business associates (BAs) reporting breaches of unsecured personal health information (PHI) affecting 500 or more individuals to the Office for Civil Rights (OCR) together could spend nearly $1 billion because of those breaches.

According to an August 2010 report from the Health Information Trust Alliance (HITRUST), the 108 entities that have submitted breach reports to OCR since September 23, 2009 and through the time of the HITRUST report could combine to spend $834.3 million in total costs to address violations of HIPAA.

HITRUST used the 2009 Ponemon Institute study that found the average cost for each compromised record is approximately $144 in indirect costs and $60 of direct costs, for a total cost of $204.

OCR’s breach notification website list has grown since the HITRUST report was published this month. As of August 13, 130 entities have reported breaches of 500 or more.

Read the full story on HIPAA Update.



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