Data breaches cost hospitals $6b annually.

• Position: STUDY

Healthcare organizations spend nearly $6 billion per year on data breaches, according to a Ponemon Institute study.

"The Benchmark Study on Patient Privacy and Data Security" reveals that the impact of a data breach over a two-year period is $2 million per organization, while the lifetime value of lost patient data equals $107,580.

The study surveyed top officials at 65 healthcare organizations. On average, those organizations experienced 2.4 data breach incidents during the two-year period of the study. The incidents were caused by issues, including unintentional employee action, lost or stolen computing devices, and third-party error. The study found that billing and medical recordkeeping were most vulnerable to data loss or theft.

The study also revealed that:

* 70% of healthcare organizations surveyed said protecting patient data was a low priority

* 67% said they have less than two staff members dedicated to data protection management

* 71% of respondents said their organizations have inadequate resources to protect patient data

* 69% said the policies and procedures in place to prevent and detect patient data loss are insufficient

"Our research shows that the healthcare industry is struggling to protect sensitive medical information, putting patients at risk of medical identity fraud and...