Data Breaches Cost Healthcare $6.5M Or $429 Per Patient Record

Thomas Fox is president of Tech Experts, southeast Michigan’s leading small business computer support company.

Data breach costs are on the rise, with breach-related spending in the healthcare sector reaching $6.5 million on average, an IBM-sponsored report shows.

Data breaches cost the healthcare sector an average of $6.5 million per breach, over 60 percent more than all other business sectors, according to a Ponemon Institute report, sponsored by IBM. Other sectors spend about $3.9 million, on average.

Researchers interviewed 500 global organizations that experienced a data breach in the last year. The researchers found for the ninth consecutive year the healthcare sector is still the hardest hit financially by data breaches.

The costs are directly related to legal, technical, and regulatory functions, including patient notifications, breach detection and response, and lost business caused by reputational damage, loss of consumer trust, and downtime. [Continue reading]

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