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

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CHICAGO--(BUSINESS WIRE)--Jun 3, 2025--

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/

CONTACT: Media Contact

Alexander Perrin

Founder & CEO, Patient Protect

Phone: (872)-284-5988

Email:[email protected]

Website:www.patient-protect.com

KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: OTHER HEALTH SOFTWARE GENERAL HEALTH PROFESSIONAL SERVICES TELEMEDICINE/VIRTUAL MEDICINE TECHNOLOGY HEALTHCARE REFORM SECURITY HEALTH TECHNOLOGY LEGAL HEALTH PUBLIC POLICY/GOVERNMENT

SOURCE: Patient Protect

Copyright Business Wire 2025.

PUB: 06/03/2025 08:00 AM/DISC: 06/03/2025 07:58 AM

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