Patient Protect Releases Landmark Report on the Long-Term Cost of HIPAA Breaches for Small Healthcare Providers

Patient Protect launches one of the most detailed economic models ever published on the long-term cost of healthcare data breaches — and what small practices must do next.

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.

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:

www.patient-protect.com/research

Healthcare providers can also join the waitlist for Patient Protect’s upcoming HIPAA compliance software release, launching this summer.

www.patient-protect.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20250603585797/en/

HIPAA violations don’t just cost money. They end careers, destroy trust, and shut down practices.