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Cyber Liability for the Health Care Industry – It’s no longer an option!

November 4, 2013
Peggy Hill, CLCS, MBA

Peggy Hill, CLCS, MBA

Protection of patient health information is of high priority for every healthcare provider. HIPAA/HITECH has evolved since its introduction in 1996. The health care industry has the highest privacy breach rate compared to any other industry. In the past decade, we’ve seen a surge in risk control techniques  to protect against privacy breaches at entities that transmit data electronically: clinics, hospitals, nursing homes, pharmacies, and medical practices – to name a few.

Best Practice organizations have shared that as part of the Crisis Management process reviews, they review their existing Disaster Recovery plans to ensure they have the ability to quickly and effectively respond to a Security Breach. Prior to an Emergency, it is critical to ensure the appropriate HIPAA Security Standards safeguards are in place and guidelines are strictly followed.

Unfortunately, even with the appropriate training, firewalls, and other expensive safeguards, security breaches are widespread and the cost to recover is increasing. Typically the most expensive part of a data breach isn’t the liability cost to the affected, but the cost of notification and credit monitoring!  (Tweet this!)

Cyber-attacks are more sophisticated than ever, with the leading sources of Security/Privacy breaches from:

  • lost or stolen computers (e.g., desktops, laptops, servers, smart phones),
  • USB drives,
  • paper records,
  • hacking,
  • viruses

Acquiring the appropriate level of Cyber Liability insurance coverage helps cover the Disaster Recovery costs associated with notifying its patients by law, health record and credit monitoring services, legal and forensic costs, and applicable HITECH fine/penalties. Depending on the organization’s patient database, these costs can run into the millions.

Questions?  Concerns?  We can walk you through the process!

Peggy Hill, CLCS, MBA

phill@foundersgrp.com

860-482-3506 ext 11608

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