Data breaches have lasting financial effects on hospitals, report suggests

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Data breaches can have long-term financial consequences on healthcare organizations, a Frost Radar report finds.

In the "U.S. Healthcare Cybersecurity Market 2020" report, researchers said that the cybersecurity market is poised for aggressive growth after the COVID-19 pandemic as data breaches surge. Their findings suggest that poor cybersecurity can be bad for business as well.

Five things to know: 

  1. More than 90 percent of all healthcare organizations reported at least one security breach in the last three years.

  2. Sixty-one percent of healthcare businesses acknowledged they don't have effective mechanisms to maintain proper cybersecurity.

  3. Most hospitals spend around 64 percent more on advertising in the year after a data breach.

  4. Cyberattacks on revenue cycle management platforms disrupt claims and reduce the quality of STAR rankings.

  5. A decreased STAR ranking results in lower insurance reimbursement and patient footprint.

To read the full report, click here.

More articles on cybersecurity: 
Nearly 30% of cyberattacks on hospitals in 2020 were ransomware, report finds
Email hack exposes 45,000 patients' data at Covenant HealthCare
Top ransomware group profits more than $123M in 2020 + 3 other report findings

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