03-06-2025
Patient Protect Releases Landmark Report on the Long-Term Cost of HIPAA Breaches for Small Healthcare Providers
CHICAGO--(BUSINESS WIRE)--In 2024, over 259 million Americans — roughly 81% of the population — had their protected health information (PHI) compromised. But while media coverage has focused on large hospital systems, a groundbreaking new report from Patient Protect reveals that small, independent medical practices are bearing the brunt of the damage — often without recovery.
HIPAA violations don't just cost money. They end careers, destroy trust, and shut down practices.
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The report, The Economics of ePHI Exposure: A Long-Term Impact Model of Healthcare Data Breaches, is the first of its kind to model breach-related losses over a 10-year horizon. It shows how practices without robust HIPAA compliance software or cybersecurity safeguards may face irreversible business consequences.
'We've seen providers close their doors after a single breach,' said Alexander Perrin, CEO of Patient Protect. 'This isn't just a compliance problem — it's a financial crisis hiding in plain sight.'
Among the report's key findings:
The average cost of a healthcare data breach has reached $9.8 million — nearly twice as high as the cross-industry average of $4.45 million, according to industry reports
70% of patients say they would consider switching providers after a data breach
Medical identity theft victims face $13,500 in average costs and 200+ hours of resolution
Nearly half of small practices lack sufficient cyber insurance
The study introduces a free breach risk calculator, enabling practices to estimate long-term breach exposure based on size, insurance status, and technical posture.
'The healthcare industry must shift from checkbox compliance to real-time, proactive defense,' said Joe Perrin, CTO of Patient Protect. 'Our HIPAA compliance platform is designed to help practices benchmark, improve, and protect — not just report.'
Patient Protect will host a live webinar on June 6 to walk through the research, cost model, and security roadmap. Registration is available now at:
Healthcare providers can also join the waitlist for Patient Protect's upcoming HIPAA compliance software release, launching this summer.
