Welcome!

Artificial Intelligence Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Shelly Palmer, Liz McMillan

News Feed Item

Ninety-Four Percent of Hospitals Surveyed Suffered Data Breaches; Estimated Cost to Healthcare Industry Averages $7 Billion

Errors and Cyber Attacks Are Culprits; Mobile and Cloud Threats Loom; Patients at Risk for Medical Identity Theft

TRAVERSE CITY, Mich. and PORTLAND, Ore., Dec. 6, 2012 /PRNewswire/ -- The Third Annual Benchmark Study on Patient Privacy & Data Security by Ponemon Institute, sponsored by ID Experts®, reports that healthcare organizations face an uphill battle in their efforts to stop data breaches. Ninety-four percent of healthcare organizations surveyed suffered at least one data breach; 45 percent of organizations experienced more than five data breaches during the past two years. Data breaches are an ongoing operational risk that could be costing the U.S. healthcare industry an average of $7 billion annually. A new finding indicates that 69 percent of organizations surveyed do not secure medical devices—such as mammogram imaging and insulin pumps—which hold patients' protected health information (PHI). Overall, the research indicates that patients and their PHI are at increased risk for medical identity theft. Risks to patient privacy are expected to increase, as mobile and cloud technology become pervasive. For a free copy of the Third Annual Benchmark Study on Patient Privacy & Data Security, visit http://www2.idexpertscorp.com/ponemon2012/. For the infographic, visit http://www2.idexpertscorp.com/ponemon2012/Infographic/.

(Photo: http://photos.prnewswire.com/prnh/20121206/SF24406-INFO)

Click to Tweet: 94 Percent of Hospitals Suffered #DataBreach; Cost to Healthcare Averages $7 Billion #HIPAA #Ponemon via @IDExperts http://bit.ly/UssmAO

Key Findings of the Research

  • Data breaches in healthcare are growing.

Ninety-four percent of hospitals in this study suffered data breaches during the past two years. Information breached is largely medical files and billing and insurance records. According to the research, 54 percent of organizations have little or no confidence that they can detect all patient data loss or theft. Based on the experience of the 80 healthcare organizations participating in this research, the resulting cost to the U.S. healthcare industry could be $6.87 billion, up from 2011. The average impact of a data breach is $1.2 million per organization.

  • Patients and their information are at risk for medical identity theft.

The causes of data breach cited were loss of equipment (46 percent), employee errors (42 percent), third-party snafu (42 percent), criminal attack (33 percent), and technology glitches (31 percent). More than half of healthcare organizations (52 percent) had cases of medical identity theft. Of the 52 percent of organizations that experienced medical identity theft, 39 percent say it resulted in inaccuracies in the patient's medical record and 26 percent say it affected the patient's medical treatment.

  • Technology trends threaten current landscape.

Mobile devices in the workplace pose threats to patients' PHI. Eighty-one percent of healthcare organizations permit employees to use their own mobile devices—commonly called Bring Your Own Device (BYOD)—often to access organization data. Yet 54 percent of organizations are not confident that these personally owned mobile devices are secure. Another technology threat gaining steam is cloud computing. Ninety-one percent of hospitals surveyed are using cloud-based services; many use cloud services to store patient records, patient billing information, and financial information. Yet, 47 percent of organizations lack confidence in the data security of the cloud.

  • Organizations are taking steps to detect data breaches, but majority lack budget and resources.

This past year, 36 percent of healthcare organizations have made improvements in their privacy and security programs, in response to the threat of audits conducted by the U.S. Department of Health and Human Services Office for Civil Rights. While 48 percent of organizations are now conducing security risk assessments, only 16 percent are conducting privacy risk assessments. Yet, 73 percent still have insufficient resources to prevent and detect data breaches. And 67 percent of organizations don't have controls to prevent and/or quickly detect medical identity theft.

"Healthcare organizations face many challenges in their efforts to reduce data breaches," said Dr. Larry Ponemon, chairman and founder, Ponemon Institute. "This is due in part to the recent explosion of employee-owned mobile devices in the workplace and the use of cloud computing services. In fact, many organizations admit they are not confident they can make certain these devices are secure and that patient data in the cloud is properly protected. Overall, most organizations surveyed say they have insufficient resources to prevent and detect data breaches."

Data Breaches Are a Part of "Doing Business"
"The trend continues: data breaches are increasing, patient information is at risk, yet healthcare organizations continue to follow the same processes," said Rick Kam, president and co-founder of ID Experts. "Clearly, in order for the trend to shift, organizations need to commit to this problem and make significant changes. Otherwise, as the data indicates, they will be functioning in continual operational disruption."

Recommendations for Healthcare Organizations
Kam offers five recommendations for healthcare organizations:

  1. Operationalize pre-breach and post-breach processes, including incident assessment and incident response processes
  2. Restructure the information security function to report directly to the board to symbolize commitment to data privacy and security
  3. Conduct combined privacy and security compliance assessments annually
  4. Update policies and procedures to include mobile devices and cloud
  5. Ensure the Incident Response Plan (IRP) covers business associates, partners, cyber insurance

Free Webinar to Discuss Research Findings
A free webinar Are Emerging Technologies Putting Your Patient Data at Risk?, featuring the Ponemon Institute and Providence Health & Services, will be held Thursday, December 6, 2012 at 1:00 p.m. ET. To register, visit http://bit.ly/UILqao.

About the Study
The Third Annual Benchmark Study on Patient Privacy & Data Security utilized in-depth, field-based research involving interviews with senior-level personnel at healthcare providers to collect information on the actual data loss and data theft experiences at their organizations. This benchmark research, in contrast to a traditional survey-based approach, enables researchers to collect both the qualitative and quantitative data necessary to understand the current status of patient privacy and data security in the healthcare organizations that participated in the study.

About Ponemon Institute
Ponemon Institute is dedicated to advancing responsible information and privacy management practices in business and government. To achieve this objective, the Institute conducts independent research, educates leaders from the private and public sectors and verifies the privacy and data protection practices of organizations in a variety of industries.

About ID Experts
ID Experts delivers complete data breach care. The company's solutions in data breach prevention, analysis and response are endorsed by the American Hospital Association, meet regulatory compliance and achieve the most positive outcomes for its customers. ID Experts is a leading advocate for privacy as a contributor to legislation, a corporate and active member in both the IAPP and HIMSS, a corporate member of HCCA and chairs the ANSI Identity Management Standards Panel PHI Project. For more information, join the LinkedIn All Things HITECH discussion at bit.ly/AllThingsHITECH or All Things Data Breach at http://linkd.in/TsbwgJ; follow ID Experts on Twitter @IDExperts; and visit http://www2.idexpertscorp.com/.

Note to Media:
Please visit the media resource site at http://www2.idexpertscorp.com/ponemon2012/Media-Resources-Ponemon-2012/. To schedule an interview with Rick Kam or Dr. Larry Ponemon, please contact [email protected].

SOURCE ID Experts; Ponemon Institute

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Judith Hurwitz is president and CEO of Hurwitz & Associates, a Needham, Mass., research and consulting firm focused on emerging technology, including big data, cognitive computing and governance. She is co-author of the book Cognitive Computing and Big Data Analytics, published in 2015. Her Cloud Expo session, "What Is the Business Imperative for Cognitive Computing?" is scheduled for Wednesday, June 8, at 8:40 a.m. In it, she puts cognitive computing into perspective with its value to the busin...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Financial Technology has become a topic of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 20th Cloud Expo at the Javits Center in New York, June 6-8, 2017, will find fresh new content in a new track called FinTech.
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.
Cybersecurity is a critical component of software development in many industries including medical devices. However, code is not always written to be robust or secure from the unknown or the unexpected. This gap can make medical devices susceptible to cybersecurity attacks ranging from compromised personal health information to life-sustaining treatment. In his session at @ThingsExpo, Clark Fortney, Software Engineer at Battelle, will discuss how programming oversight using key methods can incre...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...