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Data Breaches: Why Costs in Healthcare are the Highest and How to Manage Your Risk

According to recent data from an IBM–Ponemon Institute report, healthcare continues to be the most expensive industry for data breach costs globally. Even though global average costs have dipped slightly in recent years, the financial impact is still very large.

The cost for data breaches in the United States generally (including all industries) have actually increased. The average cost is now $10.2M per incident in 2025.

A graph of data breach costAI-generated content may be incorrect.

Why are Costs Higher in the U.S.?

The reason costs are so much higher in the U.S. is multifaceted. This is probably due to:

  • The high cost of mitigation
  • Large fines under HIPAA and other laws
  • Extensive reporting requirements
  • A litigious legal culture

When you look at your overall risks, a potential data breach is likely to be one of your top priorities.

What Makes Up a Breach's Total Cost?

The final bill for a data breach is complex and often includes several components. The costs can include:

  • Investigation of the incident
  • Regulatory fines and legal fees
  • Notification to patients and authorities
  • Lost business and reputational damage
  • Significant long-term remediation

Actionable Steps to Reduce Your Risk

The good news is that taking some basic steps to minimize risk can be straightforward and inexpensive. If you haven’t done some of these things—Do them! They can significantly reduce your exposure.

Key steps include:

  • Enforcing multifactor authentication
  • Encrypting sensitive data
  • Training staff to spot phishing attempts
  • Putting in place a basic compliance program
  • Conducting a HIPAA Security Risk analysis

Data breach costs remain stubbornly high in the U.S. When thinking about compliance, addressing this issue head-on is a good place to start. It can protect your business, your customers, and patients. And it may give you some peace of mind.