How Being HIPAA Compliant Could Save Your BusinessThousands!
HIPAA-compliant data storage is critical for the sustainability of any healthcare organization.
In fact, there are serious financial consequences if you are proven to have mishandled your patients'; personal data. The HIPAA Journal reports that in 2019, the aggregate fine for noncompliance was around $1,227,400. Even a $10,000 annual penalty would have a significant impact on a small practice.
HIPAA compliance is a challenge for many small firms. It has been revealed by the HHS's Office of Civil Rights (OCR) that smaller firms are less likely to be HIPAA compliant and are lagging behind in their compliance endeavors.
Why small firms can't afford to be noncompliant
Small business entrepreneurs face many challenges, such as tight budgets and assuring quality standards and expansion. HIPAA compliance should be taken seriously by any organization that manages the flow of patient information, or they risk incurring severe consequences. According to the size and compliance needs of the firm, an audit can cost anywhere from tens of thousands of dollars to some hundred thousand dollars, while the penalty for non-compliance can be in the millions!
Below is a breakdown of the likely costs of noncompliance:
A penalty of up to $1.5 million in fines per year
Legal fees: $2000+
Violation notification costs: $1000+
ID theft monitoring: Between $10 – $30 per record
Class action lawsuits: $1000+
Technical and server repair: $2000+
And several other expenses associated with HIPAA breaches. Considering these figures, it's easy to see how a large penalty could easily bankrupt a small business.
A cloud data storage that is HIPAA compliant will not only save you costs but also prevent much of the dangers that come with on-site storage.
Is it possible for Cloud Data Storage to be HIPAA Compliant ?
As long as you and your cloud service provider follow the proper measures, HIPAA-compliant cloud data storage is highly attainable.
Under HIPAA, cloud data storage providers are considered business associates (BAs) and must adhere to HIPAA regulations while managing and keeping your patients'; sensitive information in order to be HIPAA compliant.
An agreement between your practice and the business associate must also be signed.
What Is the Total Cost of Ownership (TCO) for HIPAA Compliant Data Storage?
The total cost of ownership (TCO) for HIPAA-compliant data storage will be determined by the service provider you select, your business requirements, and the amount of data you wish to store. The TCO of HIPAA-compliant cloud storage is, however, typically cheaper than that of on-premise alternatives.
Most IT experts recommend upgrading your server hardware every five years or so, for on-premise systems. This is because;
Support expenses rise by an average of 40% in the 4th year of server operation.
After five years this jumps to 200 percent and then 400 percent in year seven.
As a result, you should expect to make significant investments every 3 to 5 years, as you won't want to wait until your system has reached the end of its useful life before replacing it.
A HIPAA-compliant cloud data storage service, on the other hand, will store your data on its own servers. With cloud storage, you don't need to spend money on expensive hardware and backup solutions like network-attached storage, storage servers and tape or disk-based backups to store your data.
Over the course of five years, it becomes clear that cloud backup and recovery systems are substantially less expensive to operate than on-premises alternatives, especially when you consider the following:
Running and maintaining your own data centers does not cost anything. Maintenance, security, personnel costs, power, and rent all add up to a decent sum.
With a cloud storage solution, it's easier and more cost-effective to grow your storage capacity. On-premise alternatives require extra expenses on additional hardware to get sufficient storage capacity and backup in order to scale – and spending on more storage capacity ahead of time means that you’re basically paying for it to lay there unused.
To avoid both performance bottlenecks and the drawbacks of paying for storage that isn't being used, a cloud solution is the best option.
Is Data Security Affected by Lower TCO?
As reported by Gartner, “the majority of cloud providers invest significantly in security, realizing that their business would be at risk without doing so.”
They have an incentive to maintain their lead.
Their company's main selling point is lost if they don't prioritize data security in all they do. Consider the following questions:
Is your practice capable of attracting the greatest cybersecurity experts in the industry?
To ensure that no one breaks into your data center, are you able to afford a 24-hour security team?
Is your IT manager able to keep up with the ever-changing range of cyber menaces?
If you answered "No" to any of the following questions, your on-premise option is probably less secure than a superior HIPAA-compliant cloud storage would be.
Reducing Data Security Risks by Storing Data in the Cloud
Several security advantages can be gained by migrating your data backup and recovery activities to the cloud. A HIPAA breach is less likely with cloud backup and recovery services because:
It keeps abreast with the most recent vulnerabilities. Your on-premise systems will continue to be insecure unless you have the time, money, and talent to constantly reconfigure them.
Many on-premises systems can be protected by retrofitting air-gapped backups, but these can be expensive and time-consuming to implement and are susceptible to errors.
Backups can be done remotely. The effectiveness of a cyberattack is reduced when data is backed up offshore.
When a system is being hacked, hackers will often target both the production and the backup locations.
Having your data backed up externally ensures that you can retrieve it even if your on-site infrastructure is breached by hackers.
Protect yourself from physical hazards. Having your data backed up remotely eliminates the possibility of losing it as a result of physical damage, such as fire or natural disasters like floods and storms.
In addition, it lowers the danger of theft or mismanagement by employees.
Get a HIPAA Compliant Cloud Data Storage Solution to Save Your Business Thousands!
SC Technical is one of the best IT support companies near me you can find. We provide HIPAA compliant cloud backup, data storage and disaster recovery implementations which are relatively more affordable than conventional on-premise alternatives.
You'll save money and time by utilizing our business IT support services instead of hiring and managing your own IT infrastructure, data centers, and security staff.
We'll satisfy your healthcare organization's strict data storage requirements while going above and beyond to guarantee HIPAA compliance with our encrypted file sharing, data storage, and cloud backup and recovery assistance.