Study: Non-Compliance Costs Average of $9.4M | Healthcare Informatics Magazine | Health IT | Information Technology Skip to content Skip to navigation

Study: Non-Compliance Costs Average of $9.4M

February 2, 2011
by root
| Reprints

Tripwire, a Portland, Ore.-based provider of IT security and compliance automation solutions, and the Traverse City, Mich.-based Ponemon Institute announced the results of the first benchmark study to estimate the costs associated with an organization's compliance efforts.

In-depth conversations with 160 business leaders spanning 46 multinational companies in multiple verticals revealed that dedicated investments in compliance activities—to meet common regulations such as PCI, Sarbanes-Oxley and HIPAA—are not only a critical component of a comprehensive enterprise security strategy, but can also offer return on investment over time. The average cost of compliance was found to be more than $3.5 million. However, the cost of non-compliance comes in significantly higher at an estimated $9.4 million, 2.65 times higher than compliance costs.

Data protection and enforcement activities ranked among the most expensive compliance activities, and business disruption and loss of productivity were found to be the most significant consequences for companies that did not achieve or maintain compliance. When addressing external compliance, PCI DSS, state privacy and data protection laws, the European Union Privacy Directive and Sarbanes-Oxley were named as the main drivers for investment in compliance, and also among the most difficult requirements to comply with.



NewYork-Presbyterian, Walgreens Partner on Telemedicine Initiative

NewYork-Presbyterian and Walgreens are collaborating to bring expanded access to NewYork-Presbyterian’s healthcare through new telemedicine services, the two organizations announced this week.

ONC Releases Patient Demographic Data Quality Framework

The Office of the National Coordinator for Health IT (ONC) developed a framework to help health systems, large practices, health information exchanges and payers to improve their patient demographic data quality.

AMIA, Pew Urge Congress to Ensure ONC has Funding to Implement Cures Provisions

The Pew Charitable Trusts and the American Medical Informatics Association (AMIA) have sent a letter to congressional appropriators urging them to ensure that ONC has adequate funding to implement certain 21st Century Cures Act provisions.

Former Michigan Governor to Serve as Chair of DRIVE Health

Former Michigan Governor John Engler will serve as chair of the DRIVE Health Initiative, a campaign aimed at accelerating the U.S. health system's transition to value-based care.

NJ Medical Group Launches Statewide HIE, OneHealth New Jersey

The Medical Society of New Jersey (MSNJ) recently launched OneHealth New Jersey, a statewide health information exchange (HIE) that is now live.

Survey: 70% of Providers Using Off-Premises Computing for Some Applications

A survey conducted by KLAS Research found that 70 percent of healthcare organizations have moved at least some applications or IT infrastructure off-premises.