Medical cyberattacks don't just expose patient data to potential theft, there are real costs to your medical practice. According to IBM Security's "Cost of a Data Breach Report 2021," the cost of a healthcare breach has been the highest across all industries for the last 11 years, with each breach now costing an average of $9.23 million. You can see the importance of having cyber liability insurance in case of a breach, but most important is to prevent a breach in the first place.
There are a few reasons the cost of a healthcare information breach is so high. Consider the costs associated with HIPAA. After a successful medical cyberattack, your practice faces the following costs:
- $100 to $50,000 HIPAA penalty for each record exposed, to a maximum of $1.5 million per year.
- $500 to $750 per required patient notification of breach.
- The potential cost of patient credit monitoring for up to two years.
This doesn't take into account the legal costs of lawsuits brought by your HIPAA business associates.
Costs to Your Reputation
Beyond the financial costs, a data breach has the potential to destroy your reputation. Patients may seek care elsewhere and your name will appear on the HHS website for years to come.
The cost of upgrading your software and providing proper security training is a small price to pay to mitigate the chance your practice falls victim to a medical cyberattack.