Healthcare industry has highest data breach cost: 5 important facts from IBM, Ponemon Institute report

Written by Rachel Popa | July 26, 2018 | Print  |

For the eighth straight year, data breaches in healthcare had the highest cost compared to other industries, according to a new report from IBM and the Ponemon Institute, the National Law Review reported.

The report was generated from data collected during over 2,000 interviews with data protection, IT and compliance professionals spanning 477 companies around the world.

Here are five important facts from the report:

1. Healthcare data breaches cost an average of $408 per record, which is three times higher than the cross-industry average of $148 per record.

2. The cost per record is an increase from last year’s cost of $380.

3. The factors contributing to the healthcare industry's high costs include compliance with laws and regulations and customers walking away from a company due to mistrust.

4. Fast response times in containing and identifying breaches lowers the cost per record, the report said. On average, it took companies 197 days to identify a breach, and 69 days to contain it. If companies identified a breach in less than 100 days, it saved $1 million compared to companies that took longer.

5. Incident response teams reduce the cost of data breaches by $14 per record, and encryption saves $13.

Click here to view the full report.

More articles on quality:
Medical assistants are at risk for malpractice suits, 'JAMA' reports: 4 takeaways
QI program lowers complication rates in 5 years : 4 project insights
‘Defensive medicine’ increases costs for military patients, Duke, MIT study says

© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.

To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.