A recent study by the Ponemon Institute and Censinet highlights a critical issue in healthcare: 54% of healthcare vendors have experienced data breaches exposing protected health information (PHI). These breaches, costing an average of $2.75 million each, point to systemic failures in third-party risk assessment processes. This page explores the findings, the challenges of current risk management practices, and actionable solutions to improve healthcare security.
Transform your healthcare organization’s risk assessment process to protect patient data and reduce the risk of costly breaches. Embrace automation, collaboration, and frequent updates to improve security outcomes and build trust with vendors.
54% of healthcare vendors have experienced at least one data breach exposing PHI. 41% of vendors reported six or more breaches in the past two years. The average cost of a healthcare vendor data breach is $2.75 million, with nearly 10,000 records exposed per breach.
Costly and time-consuming: Vendors spend an average of $2.5 million annually completing risk assessments. Confusing and ambiguous: 64% of vendors find risk assessment questions unclear, leading to inefficiencies. Outdated assessments: 59% of vendors report that risk assessments become obsolete within three months, yet only 18% of providers require updates more than once per year. Ineffective outcomes: Only 44% of vendors believe risk assessments improve their security posture, highlighting a misallocation of resources.
Lost business: 54% of vendors believe a single data breach would result in lost business and revenue. Provider rejection: 28% of vendors report losing business after providers discovered gaps in their privacy and security practices. Increased costs: Vendors spend significant resources on risk assessments that fail to deliver meaningful security improvements.
Automation: 61% of vendors believe workflow automation would streamline the process. Automation could reduce costs by up to 50% and ensure assessments remain up-to-date. Collaboration: Vendors and providers must work together to create transparent, effective policies and procedures. A collaborative approach fosters trust and improves security outcomes. Frequent updates: Regularly updating assessments ensures they remain relevant in a rapidly changing threat landscape. Standardization: Simplifying and standardizing risk assessment questions can reduce confusion and improve efficiency.