Study: Data Loss Costs Hospitals Billions Annually
HEALTHCARE PRIVACY—U.S.November 9, 2010
The average per-hospital cost of a data breach is $1 million per year--$6 billion annually for the industry--but the majority of hospitals report they do not have adequate resources to protect patient data loss. That's according to the Ponemon Institute's Benchmark Study on Patient Privacy and Data Security, sponsored by ID Experts. Forbes reports that for medical data breaches, customer losses and brand damage end up costing more than double the average for breaches in other industries. "In a trusted industry like healthcare, there's a high expectation of good stewardship of personal information," said Larry Ponemon, CIPP, "and when that confidence is lost, it leads to customer churn."