The going rate for a compromised medical record seems to be $1000 (well, at least that’s the asking price) as seen in papers filed in the eleven class action lawsuits against Sutter Health following the theft of a desktop computer last fall.  The computer contained unencrypted protected health information on about 4.24 million members.  The eleven class action suits are likely to be consolidated for ease of handling by the courts.

For an outfit whose most recently reported year-end financials show just under $900 million in income on just over $9 billion in revenue, a $4.24 billion claim certainly qualifies as a big deal.  The data breach claims against Sutter Health were filed last year following its self-reporting of the computer theft, and are in the news again due to the potential consolidation.

The company had reportedly begun to encrypt its data last year, starting with more vulnerable mobile devices, and moving on to desktop computers, but had not gotten to the desktop in question by the time of the breach.  It remains to be seen how these facts end up affecting the final damages awarded in this case.

The takeaway for other covered entities and business associates out there: If the OCR HIPAA audits aren’t enough of a motivation to get cracking with beefed-up data privacy and security protections, the potential exposure of Sutter Health in this class action suit should be reason enough to get started on this work as soon as possible, and to make it a high priority. Suits like these may be grounded both in state law and in indirect theories flowing from HIPAA/HITECH breaches (since there is no private right of action under HIPAA). The exposure is there, and a number’s been put out there to quantify it. However expensive and inconvenient data encryption and other privacy and security measures may be, they are surely worth avoiding $1,000-a-head lawsuits and months of negative publicity.

Share on Twitter

3 Responses for “How Much Will a Data Breach Cost You?”

  1. May Skender says:

    Desktop computers these days are very powerful and they offer also more features compared to those computers that were manufactured decades ago. ”,:.

    Kind regards
    http://www.melatoninfaq.com/melatonin-side-effects/

  2. Alphonse Beuchler says:

    desktop computers these days are very very powerful and the price is also very affordable. ‘

    <a href="Most recently released blog post provided by our new webpage
    http://www.foodsupplementdigest.com/benefits-of-celery/

  3. Jackeline Godbee says:

    If you are in the market for a computer, there are a number of factors to consider. Will it be used for your home, your office or perhaps even your home office combo? First off, you will need to set a budget for your new purchase before deciding whether to shop for notebook or desktop computers. Many offices use desktop computers because they are not intended to be moved around a lot. In addition, affordability often plays a large role in someone’s decision as to whether to purchase notebook or desktop computers.

    <,http://www.caramoanpackage.com

Leave a Reply

THCB BLOGGERS

FROM THE VAULT

The Power of Small Why Doctors Shouldn't Be Healers Big Data in Healthcare. Good or Evil? Depends on the Dollars. California's Proposition 46 Narrow Networking
MASTHEAD STUFF

MATTHEW HOLT
Founder & Publisher

JOHN IRVINE
Executive Editor

JONATHAN HALVORSON
Editor

JOE FLOWER
Contributing Editor

MICHAEL MILLENSON
Contributing Editor

ALEX EPSTEIN
Director of Digital Media

MICHELLE NOTEBOOM Business Development

MUNIA MITRA, MD
Clinical Medicine

Vikram Khanna
Editor-At-Large, Wellness

THCB FROM A-Z

FOLLOW US ON TWITTER
@THCBStaff

WHERE IN THE WORLD WE ARE

The Health Care Blog (THCB) is based in San Francisco. We were founded in 2004 by Matthew Holt and John Irvine.

MEDIA REQUESTS

Interview Requests + Bookings. We like to talk. E-mail us.

BLOGGING
Yes. We're looking for bloggers. Send us your posts.

STORY TIPS
Breaking health care story? Drop us an e-mail.

CROSSPOSTS

We frequently accept crossposts from smaller blogs and major U.S. and International publications. You'll need syndication rights. Email a link to your submission.

WHAT WE'RE LOOKING FOR

Op-eds. Crossposts. Columns. Great ideas for improving the health care system. Pitches for healthcare-focused startups and business.Write ups of original research. Reviews of new healthcare products and startups. Data-driven analysis of health care trends. Policy proposals. E-mail us a copy of your piece in the body of your email or as a Google Doc. No phone calls please!

THCB PRESS

Healthcare focused e-books and videos for distribution via THCB and other channels like Amazon and Smashwords. Want to get involved? Send us a note telling us what you have in mind. Proposals should be no more than one page in length.

HEALTH SYSTEM $#@!!!
If you've healthcare professional or consumer and have had a recent experience with the U.S. health care system, either for good or bad, that you want the world to know about, tell us about it. Have a good health care story you think we should know about? Send story ideas and tips to editor@thehealthcareblog.com.

REPRINTS Questions on reprints, permissions and syndication to ad_sales@thehealthcareblog.com.

WHAT WE COVER

HEALTHCARE, GENERAL

Affordable Care Act
Business of Health Care
National health policy
Life on the front lines
Practice management
Hospital managment
Health plans
Prevention
Specialty practice
Oncology
Cardiology
Geriatrics
ENT
Emergency Medicine
Radiology
Nursing
Quality, Costs
Residency
Research
Medical education
Med School
CMS
CDC
HHS
FDA
Public Health
Wellness

HIT TOPICS
Apple
Analytics
athenahealth
Electronic medical records
EPIC
Design
Accountable care organizations
Meaningful use
Interoperability
Online Communities
Open Source
Privacy
Usability
Samsung
Social media
Tips and Tricks
Wearables
Workflow
Exchanges

EVENTS

TedMed
HIMSS South x South West
Health 2.0
WHCC
AHIP
AHIMA
Log in - Powered by WordPress.