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Reputational Repercussions

Reputational repercussions of a breach may include:

♦ Loss of patients

♦ Loss of current customers

♦ Loss of new customers

♦ Loss of strategic partners

♦ Loss of staff (separate from staff lost due to potential disciplinary action related to a breach)

The impact of a breach may have greater reputational repercussions if it is shared through social media or other means that raise further awareness of the breach.

The demographics of those affected by a breach also change its reputational impact. Income and age are considerations for health privacy sensitivity, among other factors.

Financial Repercussions

Financial repercussions are grouped into five segments, each of which may contain multiple types of financial costs.

1. Cost of remediation may include:

• Investigation or forensic costs

• Corrective action plan costs

• Workforce sanction costs

• Identity theft monitoring costs

2. Costs of communication may include:

• Notifying affected individuals

• Notifying media outlets and notifying governmental agencies

• Public relations costs

• Investor relations

3. Costs of changes to insurance may include:

• Broker costs

• Presenting and negotiating with agencies

• Increased cost of coverage

4. Costs of changing associates may include:

• Due diligence for new vendors

• Transitions to new vendors

• Increased costs of new vendors

5. Costs of business distraction may include:

• Lost productivity

• Opportunity costs

• Diversion of resources

Legal and Regulatory Repercussions

Legal and regulatory repercussions of a breach can be grouped into four areas:

1. Costs associated with actions by the U.S. Department of Health and Human Services' Office for Civil Rights (OCR), including:

• Fines and penalties

• Costs of additional corrective action plans

2. State fines and penalties

3. Lawsuit costs, including:

• Legal costs

• Settlement costs

• Additional payments to affected individuals

• Insurance deductibles

4. Costs associated with potential loss of accreditation or reinstatement of accreditation

 
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