Understanding HIPAA healthcare statistics

The HIPAA Privacy Rule mandates security standards for HIPAA-covered entities to protect patient information and promote cybersecurity policies. Healthcare organizations must understand HIPAA violation statistics to address cybersecurity risks.

By prioritizing data protection, investing in adequate cybersecurity infrastructure, and implementing comprehensive training programs, healthcare providers can mitigate the risks posed by cyber threats and safeguard patient privacy.

Overview of healthcare data breaches

Healthcare organizations need to strengthen cybersecurity measures due to rapidly growing HIPAA-related incidents. Examining data from past years reveals an upswing trend:

• Each employee in a healthcare organization has access to nearly 20% of files.
• Financial reasons motivate 88% of hackers to target healthcare entities.
• Stolen healthcare records account for 95% of all identity theft incidents, with such information being worth about 50 times more than credit card data.
• Around 75% of surveyed healthcare services admitted that their cybersecurity infrastructure is largely unprepared for cyber threats, putting patient privacy and health data at risk.

Read also: How to respond to a data breach 

Rapidly increasing exposure of medical records

The exposure of medical records poses a significant risk to healthcare systems, especially those operating with outdated technology and inadequate security policies. Key data breach statistics highlight the concerning trend:

• Between 2010 and 2014, approximately 50 million patient records were exposed, which quadrupled in the following five years.
• In 2021 alone, approximately 45 million healthcare records were stolen or compromised, and this number is projected to reach nearly 50 million in 2022.
• In 2021, over 57% of healthcare organizations reported enduring more than five data breaches.
• The most reported major data breaches occurred in 2021, affecting more than 45 million individuals. This represents the highest number since the Anthem data breach in 2015, which impacted 80 million individuals.
• In March 2022, the Office for Civil Rights (OCR) reported 30 healthcare breaches, impacting 1.4 million people.

See more: Authorized access to medical records is important, too 

The high cost of prevention vs. penalties & data breach expenses

While the costs of implementing cybersecurity measures may be high, the penalties for HIPAA violations and the expenses incurred due to data breaches are even higher. Key statistics shed light on the financial impact:

• In 2020, security breaches resulted in over $6 trillion in damages globally.
• From 2020 to 2022, the healthcare sector experienced approximately $25 billion in losses from cyber attacks.
• In 2020, the healthcare industry's average cost of a data breach was $7.3 million, which increased to $9.3 million in 2022.
• The total cost of data breaches in the healthcare industry exceeded $10 million on average in 2022, representing a 9-0% increase compared to the previous year.
• As of November 2022, the Office for Civil Rights (OCR) settled 26 cases of HIPAA violations for over $133 million.

See also: HIPAA Compliant Email: The Definitive Guide 

In the news

IBM, in collaboration with the Ponemon Institute, studied 604 organizations affected by data breaches between March 2023 and February 2024. The breaches impacted industries across 16 countries, with leaked records ranging from 2,100 to 113,000. The average global cost of a data breach increased to $4.88 million, the largest increase since the start of the pandemic. 

The study also revealed that more than half of the organizations passed these costs onto customers through increased prices for goods and services. 

Moreover, healthcare breaches had the highest average cost at $9.77 million, continuing a trend since 2011.

See more: IBM reports healthcare data breach costs hit record high $9.77 million 

FAQs

How can you identify a breach?

Identifying a HIPAA breach involves recognizing any unauthorized acquisition, access, use, or disclosure of PHI that compromises its security or privacy. Monitoring access logs, conducting regular security assessments, and promptly investigating any suspicious incidents are necessary steps in identifying potential breaches. Early detection enables prompt action to mitigate harm and fulfill reporting requirements under HIPAA regulations.

What is the HIPAA breach notification rule?

The HIPAA breach notification rule requires covered entities and their business associates to notify affected individuals, the Department of Health and Human Services' Office for Civil Rights (OCR), and potentially the media and state authorities following a breach of unsecured PHI.  

What is the difference between a HIPAA breach and a HIPAA violation?

A HIPAA breach involves the unauthorized disclosure of PHI, triggering notification requirements, while a HIPAA violation encompasses any failure to comply with HIPAA regulations, whether or not it leads to a breach. Both breaches and violations can result in penalties, but the severity of the consequences may vary depending on the nature and extent of the non-compliance.

Why are there so many more data breaches in the healthcare sector than in other sectors?

Healthcare data is more valuable on the black market than any other type of data, as it takes longer for healthcare fraud to be discovered and the stolen data can be used for a longer period. Additionally, healthcare organizations have stricter breach notification requirements than other sectors, and certain types of breaches (such as ransomware attacks) must be reported even if it cannot be established that data has been compromised.

See also: HIPAA Compliant Email: The Definitive Guide