Data Breaches Cost U.S. Hospitals $6B Annually

A study published by the non-profit organization Ponemon Institute indicates that data breaches experienced by hospitals are more devastating to their reputations and financial standings than data breaches in other industries, according to a Forbes news report.

Ponemon found an average of approximately $1 million per U.S. hospital, or $6 billion across the entire industry, is the cost for losing patient health information. Ponemon surveyed 67 U.S. healthcare organizations about data breaches they experienced in the last two years. The surveyed organizations, on average, experienced 2.4 breaches over that time span, losing more than 1,700 patient records for each data spill.

Ponemon points out that although the hospital average pales in comparison to average data breaches across the board — which see approximately 30,000 records compromised — hospitals see more financial damage and customer loss than other industries. By the numbers, Ponemon says hospitals data breaches end up costing $471 per patient record based on customer losses and brand damage, which is more than twice the $204 per customer records across industries.

Read the Forbes news report about the Ponemon Institute's study on hospital data breaches.

Read other coverage about data breaches:

- Indiana Attorney General Files Lawsuit Against WellPoint Over Data Breach

- Thousands of New York-Presbyterian Hospital's Patients Info Leaked Onto Internet

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