In the healthcare industry, expensive equipment is usually a point of pride, but one leading provider never intended to pay $1.5 million each for two laptops. Only after the laptops were stolen did it come to light that they contained over 1 million unencrypted patient records — a clear HIPAA violation. The provider ended up settling a class action suit for $3 million, but plenty of other healthcare providers have felt the sting of failing to comply with HIPAA, as well. The next major data breach isn’t a matter of if, only when.
HIPAA fines and settlements are expensive, but they’re just the tip of an even more costly iceberg. After HIPAA costs comes all of the other financial damage. An affected healthcare provider must foot the bill for identity theft protection/ credit monitoring for individual victims. Nearly inevitable civil lawsuits will likely result in costly settlements and judgments.
Depending on the size of the breach, the HIPAA settlement could be the least of a healthcare provider’s worries.
Download this whitepaper to learn more about encryption in the healthcare industry.
