The Cost of Non-Compliance with HIPAA

Non-compliance with HIPAA can result in financial penalties, operational disruption, and reputational damage. Costs can include legal fees, class action lawsuits, and efforts to reverse a “culture of non-compliance”. Cyberattacks due to non-compliance can disrupt patient care and prove costly, with healthcare data breaches costing an average of $10.93 million per incident in 2023. HIPAA compliance, while involving significant investment in infrastructure and ongoing training, offers benefits such as enhanced patient trust and improved data security.