Healthcare Data Breach Statistics

Posted By Steve Alder on Jun 20, 2024

The HIPAA Journal has compiled healthcare data breach statistics from October 2009, when the Department of Health and Human Services (HHS) Office for Civil Rights (OCR) first started publishing summaries of healthcare data breaches on its website.

This page is regularly updated to reflect the latest healthcare data breach statistics. These statistics and graphs were last updated on Jul 2, 2024. Check back regularly to get the latest healthcare data breach statistics and healthcare data breach trends. You can also receive a free copy of our HIPAA Compliance Checklist to understand your organization’s responsibilities under HIPAA.

Trends In Healthcare Data Breach Statistics

Our healthcare data breach statistics clearly show there has been an upward trend in data breaches over the past 14 years, with 2021 seeing more data breaches reported than any other year since records first started being published by OCR.

Data breaches increased once again in 2022, with OCR receiving reports of 720 data breaches of 500 or more records. There was no letup in cyberattacks on healthcare organizations in 2023, which set two new records – The most reported data breaches and the most breached records. In 2023, 725 data breaches were reported to OCR and across those breaches, more than 133 million records were exposed or impermissibly disclosed.

The healthcare data breach statistics below only include data breaches of 500 or more records that have been reported to OCR, as while HIPAA requires all data breaches to be reported regardless of size, OCR does not publish details of smaller data breaches. The breaches included in the statistics and graphs below include closed cases and breaches that are still being investigated by OCR for potential HIPAA violations.

Between October 21, 2009, when OCR first started publishing summaries of data breach reports on its “Wall of Shame”, and and December 31, 2023, 5,887 large healthcare data breaches have been reported. On January 22, 2023, the breach portal listed 857 data breaches as still; under investigation. This time last year there were 882 breaches listed as under investigation, which shows OCR has made little progress in clearing its backlog of investigations – something that is unlikely to change given the chronic lack of funding for the department.

There have been notable changes over the years in the main causes of breaches. The loss/theft of healthcare records and electronic protected health information dominated the breach reports between 2009 and 2015. The move to digital record keeping, more accurate tracking of electronic devices, and more widespread adoption of data encryption have been key in reducing these data breaches. There has also been a downward trend in improper disposal incidents and unauthorized access/disclosure incidents, but data breaches continue to increase due to a massive increase in hacking incidents and ransomware attacks. In 2023, OCR reported a 239% increase in hacking-related data breaches between January 1, 2018, and September 30, 2023, and a 278% increase in ransomware attacks over the same period. In 2019, hacking accounted for 49% of all reported breaches. In 2023, 79.7% of data breaches were due to hacking incidents.

It is not just the number of data breaches that are increasing as the breaches are becoming more severe. 2021 was a bad year for data breaches with 45.9 million records breached, and 2022 was worse with 51.9 million records breached, but 2023 smashed all previous records with an astonishing 133 million records exposed, stolen, or otherwise impermissibly disclosed. The huge total for 2023 includes 26 data breaches of more than 1 million records and four breaches of more than 8 million records. The largest data breach of the year affected 11,270,000 individuals – the second-largest healthcare data breach of all time.

The breach data is updated at least monthly, with the previous month’s figures typically added around the 21st of each month so check back frequently to see the emerging trends for the current year.

Healthcare Data Breaches by Year

Between 2009 and 2023, 5,887 healthcare data breaches of 500 or more records were reported to OCR. Those breaches have resulted in the exposure or impermissible disclosure of 519,935,970 healthcare records. That equates to more than 1.5x the population of the United States. In 2018, healthcare data breaches of 500 or more records were being reported at a rate of around 1 per day. Fast forward 5 years and the rate has more than doubled. In 2023, an average of 1.99 healthcare data breaches of 500 or more records were reported each day, and on average, 364,571 healthcare records were breached every day.

Healthcare Records Exposed by Year

There has been a general upward trend in the number of records exposed each year, with a massive increase in 2015. Until 2023, 2015 was the worst year in history for breached healthcare records with more than 112 million records exposed or impermissibly disclosed. 2015 was particularly bad due to three massive data breaches at health plans: Anthem Inc, Premera Blue Cross, and Excellus. The Anthem breach affected 78.8 million of its members, with the Premera Blue Cross and Excellus data breaches both affecting around 10 million+ individuals.

Average/Median Healthcare Data Breach Size by Year

Largest Healthcare Data Breaches (2009 – 2024)

The largest healthcare data breach occurred at Anthem Inc. in 2015 and involved the records of 78.8 million individuals. A data breach as large as that seemed unlikely to occur again, but this year is likely to see that record smashed. A ransomware attack on Change Healthcare has resulted in the theft of the protected health information of up to 1 in 3 Americans. The ransomware attack occurred on February 21, 2024; however, the total number of affected individuals has yet to be confirmed. It will likely be several more weeks, and potentially months before the number of affected individuals is confirmed.  You can read more about this devastating cyberattack in this article.

* PJ&A reported the data breach to OCR as affecting 8,952,212 individuals but some of its covered entity clients reported the data breach themselves. In total, more than 13 million individuals are known to have been affected by the PJ&A data breach.

These figures are calculated based on the reporting entity. When a data breach occurs at a business associate, it may be reported by the business associate, or by each affected HIPAA-covered entity. For instance, in 2022, the electronic health record provider, Eye Care Leaders, suffered a ransomware attack. Each covered entity reported the breach separately. The HIPAA Journal has tracked the breach reports and at least 39 HIPAA-covered entities were affected, and the records of more than 3.09 million individuals were exposed. Similarly, a major data breach occurred at American Medical Collection Agency in 2019 that was reported by each covered entity, rather than AMCA. That breach affected more than 25 million individuals. Even when business associates of HIPAA-covered entities self-report the data breaches, some of their covered entity clients choose to report the breach themselves. As a result, business associate data breaches tend to be under-represented in analyses of healthcare data breaches.

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Causes of Healthcare Data Breaches

Healthcare Hacking Incidents by Year

Our healthcare data breach statistics show hacking is now the leading cause of healthcare data breaches, although it should be noted that healthcare organizations are now much better at detecting hacking incidents than they were in 2010. The low number of hacking/IT incidents in the earlier years could be partially due to the failure to detect hacking incidents and malware infections although it is clear that there has been a massive increase in attacks in recent years. Many of the hacking incidents between 2014 and 2018 occurred many months – and in some cases years – before they were detected.

Unauthorized Access/Disclosures by Year

As with hacking, healthcare organizations are getting better at detecting insider breaches and reporting those breaches to the Office for Civil Rights, although as the chart below shows, the severity of these breaches has increased significantly in recent years. These incidents include employee errors, negligence, snooping on medical records, and data theft by malicious insiders. Better HIPAA and security awareness training along with the use of technologies for monitoring access to medical records are helping to reduce these data breaches.

Loss/Theft of PHI and Unencrypted ePHI by Year

Our healthcare data breach statistics show that HIPAA-covered entities and business associates have gotten significantly better at protecting healthcare records with administrative, physical, and technical controls such as encryption, although unencrypted laptops and other electronic devices are still being left unsecured in vehicles and locations accessible by the public. Many of these theft/loss incidents involve paper records, which can equally result in the exposure of large amounts of patient information.

Improper Disposal of PHI/ePHI by Year

HIPAA requires healthcare data, whether in physical or electronic form, to be permanently destroyed when no longer required. The improper disposal of PHI is a relatively infrequent breach cause and typically involves paper records that have not been sent for shredding or have been abandoned.

Healthcare Data Breaches by HIPAA-Regulated Entity Type

The table below shows the raw data from OCR of the data breaches by the entity reporting the breaches; however, this data does not tell the whole story, as data breaches occurring at business associates may be reported by the business associate or each affected covered entity or a combination of the two. Many online reports that provide healthcare data breach statistics fail to accurately reflect where many data breaches are occurring.

Healthcare Data Breaches: Reporting Entity (2009 – 2024)

The graphs below paint a more accurate picture of where healthcare data breaches are occurring, rather than the entities that have reported the data breaches, and clearly show the extent to which business associate data breaches have increased in recent years. In 2023, more than 93 million healthcare records were exposed or stolen in data breaches at business associates compared to 34.9 million records in breaches at healthcare providers. The charts below show data breaches by reporting entity.

These data highlight the importance of securing the supply chain, conducting due diligence on vendors before their products and services are used, and monitoring existing vendors for HIPAA Security Rule compliance and cybersecurity. In 2023, one of the biggest challenges in healthcare cybersecurity is securing the supply chain.

OCR Settlements and Fines for HIPAA Violations

The penalties for HIPAA violations can be severe. Multi-million-dollar fines are possible when violations have been allowed to persist for several years or when there is systemic non-compliance with the HIPAA Rules, making HIPAA compliance financially as well as ethically important.

The penalty structure for HIPAA violations is detailed in the infographic below. These figures are adjusted annually for inflation. The current penalty amounts can be found here.

OCR Settlements and Fines Over the Years

Further information on HIPAA fines and settlements can be viewed on our HIPAA violation fines page, which details all HIPAA violation fines imposed by OCR since 2008. As the graph below shows, HIPAA enforcement activity has steadily increased over the past 14 years, with 2022 being a record year, with 22 penalties imposed. The major rise in HIPAA violation penalties in 2020 was largely due to a new enforcement initiative by OCR targeting non-compliance with the HIPAA Right of Access – the right of patients to access and obtain a copy of their healthcare data. 11 settlements were reached with healthcare providers in 2020 to resolve cases where patients were not given timely access to their medical records, and in 2021 all but two of the 14 penalties were for HIPAA Right of Access violations. From September 2019 to December 2023, 46 penalties have been imposed to resolve HIPAA Right of Access violations.

How Much Has OCR Fined HIPAA Covered Entities and Business Associates?

In addition to an increase in fines and settlements, penalty amounts increased considerably between 2015 and 2018. In 2018, the largest ever financial penalty for HIPAA violations was paid by Anthem Inc. to resolve potential violations of the HIPAA Security Rule that were discovered by OCR during the investigation of its 78.8 million record data breach in 2015. Anthem paid $16 million to settle the case. In 2020, Premera Blue Cross settled potential violations of the HIPAA Rules and paid a $6,850,000 penalty to resolve its 2015 data breach of the PHI of almost 10.5 million individuals, and in 2021 a $5,000,000 settlement was agreed upon with Excellus Health Plan to resolve HIPAA violations identified that contributed to its 2015 data breach of the PHI of almost 9.4 million individuals.

While large financial penalties are still imposed to resolve HIPAA violations, the trend has been for smaller penalties to be issued in recent years, with those penalties imposed on healthcare organizations of all sizes. It is no longer the case where smaller healthcare organizations escape HIPAA fines. In 2022, 55% of the financial penalties imposed by OCR were on small medical practices.

The fall in revenues from OCR’s enforcement activities in recent years is due to OCR reassessing the language of the HITECH Act, which called for penalties for HIPAA violations to be increased. OCR determined that the language of the HITECH Act had been misinterpreted at the time and reduced the penalty caps in three of the four penalty tiers. OCR is now petitioning Congress to increase the penalty caps to increase the deterrent effect.

It was expected that 2018 would see fewer fines for HIPAA-covered entities than in the past two years due to HHS budget cuts, but that did not prove not to be the case. 2018 was a record-breaking year for HIPAA fines and settlements, beating the previous record of $23,505,300 set in 2016 by 22%. OCR received payments totaling $28,683,400 in 2018 from HIPAA-covered entities and business associates who had violated HIPAA Rules and 2020 saw a major increase in enforcement activity with 19 settlements. The number of financial penalties was reduced in 2021; however, 2022 has seen penalties increase, with 22 penalties announced by OCR, more than in any other year to date. There was a reduction in enforcement actions in 2023, although there was an increase in penalty amounts. OCR had been concentrating on HIPAA Right of Access violations, for which the penalties are generally relatively low as only one HIPAA provision is typically violated. In 2023, OCR imposed more files for HIPAA Security Rule violations, where the entity concerned violated multiple aspects of the Security Rule, hence the higher penalties.

OCR Penalties for HIPAA Violations (2008 – 2024)

*In 2021, following an appeal, the civil monetary penalty imposed on the University of Texas MD Anderson Cancer Center by the HHS’ Office for Civil Rights was vacated.

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State Attorneys General HIPAA Fines and Other Financial Penalties for Healthcare Organizations

State attorneys general can bring actions against HIPAA-covered entities and their business associates for violations of the HIPAA Rules. Penalties range from $100 per HIPAA violation up to a maximum of $25,000 per violation category, per year.

Only a handful of U.S. states have imposed penalties for HIPAA violations; however, that changed in 2019 when many state Attorneys General started participating in multistate actions against HIPAA-covered entities and business associates that experienced major data breaches and were found not to be in compliance with the HIPAA Rules.

The penalties detailed below have been imposed by state attorneys general for HIPAA violations and violations of state laws. It is common for penalties to be imposed solely for violations of state laws, even though there are corresponding HIPAA violations.

Attorneys General HIPAA Fines (2008 – 2024)

Click for further information HIPAA enforcement by State Attorneys General.

Federal Trade Commission Fines and Penalties 2023

In 2009, the Federal Trade Commission (FTC) published a new rule that required vendors of personal health records and related entities to notify consumers following a breach involving unsecured information. The FTC Health Breach Notification Rule applies only to identifying health information that is not covered by HIPAA. The Rule does not apply to HIPAA-covered entities or business associates, which have reporting requirements per the HIPAA Breach Notification Rule.

The FTC issued a policy update in 2021 stating its intention to start actively enforcing compliance. Prior to 2023, no financial penalties had been imposed for breach notification failures but that changed in February 2023.

Healthcare Data Breach Statistics FAQs

How does the number of data breaches in the healthcare sector compare with other sectors?

The number of data breaches in the healthcare sector compares poorly with other sectors. An analysis of data breaches recorded on the Privacy Rights database between 2015 and 2022 showed that 32% of all recorded data breaches were in the healthcare sector – almost double the number recorded in the financial and manufacturing sectors.

Why are there so many more data breaches in the healthcare sector than in other sectors?

There are so many more data breaches in the healthcare sector than in other sectors because healthcare data is more valuable on the black market than any other type of data. This is because it takes longer for healthcare fraud to be discovered and stolen data can be used for longer compared to (for example) a stolen credit card which can be stopped as soon as the breach is discovered.

It is also the case that organizations in the healthcare sector have stricter breach notification requirements than in other sectors. Certain types of breaches (i.e., ransomware attacks) have to be reported even if it cannot be established data has been compromised. The increasing number of recent ransomware attacks may have influenced the healthcare data breach statistics.

Why has the average HIPAA penalty decreased since 2018 despite increases in the number of breaches and median breach size?

The average HIPAA penalty has decreased since 2018 despite increases in the number of breaches and median breach size because in recent years the Office for Civil Rights (OCR) has been running a right of access initiative to clamp down on providers who fail to provide patients with access to their PHI within the thirty days allowed.

Penalties for right of access failures are less than for high-volume data breaches, and this has resulted in a decrease in the average HIPAA penalty in recent years. However, while the average HIPAA penalty issued by OCR has decreased, penalties issued by State Attorneys General have remained constant, while it is too early to find trends in fines issued by the FTC.

If a healthcare professional discloses PHI without authorization, is this included in the healthcare data breach statistics?

If a healthcare professional discloses PHI without authorization, the disclosure is unlikely to appear in the healthcare data breach statistics because the statistics are compiled from breaches involving 500 or more records. Therefore, individual unauthorized disclosures of PHI are not included in the figures. However, if the unauthorized disclosure is investigated by OCR and found to be attributable to willful neglect, any subsequent fines will be included in the settlement statistics.

How can healthcare organizations mitigate data breaches?

Healthcare organizations can mitigate data breaches using various methods. The most effective is to encrypt protected health information to render it unusable, unreadable, or indecipherable in the event of a data breach attack. This will ensure data is not compromised and the attack will not have to be reported to the Office for Civil Rights.

Other steps include implementing two-factor authentication on privileged accounts to mitigate the consequences of credential theft, running checks on all storage volumes (cloud and on-premises) to ensure appropriate permissions are applied, checking network connections for unauthorized open ports, and eliminating Shadow IT environments developed as workarounds.

How are successful phishing attacks recorded in the HIPAA breach reports?

Successful phishing attacks are recorded in the HIPAA breach reports as Hacking/IT Incidents. However, as other cybersecurity incidents such as ransomware attacks and events attributable to malware are also categorized as Hacking/IT Incidents, it is not possible to determine how many successful phishing attacks there have been affecting more than 500 individuals.

Why doesn’t HHS fine every covered organization when a HIPAA data breach occurs?

HHS doesn’t fine every covered organization when a HIPAA data breach occurs because not all data breaches are attributable to HIPAA violations. For example, successful ransomware attacks are notifiable events even when no PHI is disclosed and when systems can be quickly restored from backups because, for a period of time, PHI was unavailable.

Why is the number of HIPAA breaches increasing despite more awareness about HIPAA compliance?

The number of HIPAA breaches is increasing despite more awareness about HIPAA compliance due to the increasing digitalization of healthcare data and the increasing sophistication of cyberattacks. While there is an argument that more awareness about HIPAA compliance is having an impact on the lower number of HIPAA breaches attributable to lost or stolen drives and devices, there is a counterargument that, because of the increase in cloud computing, fewer covered organizations are transporting unencrypted PHI on drives and devices.

How can HIPAA covered entities better secure their supply chains to prevent data breaches attributable to business associates?

HIPAA covered entities can better secure their supply chains to prevent data breaches attributable to business associates by conducting more thorough due diligence on each business associate. Many covered entities rely on “good faith assurances” rather than investigating the measures each business associate has in place to prevent data breaches, the training provided to business associate workforces, and the security of communication channels used to transmit PHI.

What is the difference between a healthcare data breach and a HIPAA data breach?

The difference between a healthcare data breach and a HIPAA data breach is that a healthcare data breach is one in which healthcare data is accessed without authorization from a healthcare provider (who may or may not be a HIPAA covered entity or business associate), while a HIPAA data breach is a breach of any Protected Health Information (which can include financial information) from any covered health plan, health care clearinghouse, or healthcare provider, or any business associate providing a service for or on behalf of a covered entity.

Therefore, not only is it the nature of the data that distinguishes a healthcare data breach from a HIPAA data breach (i.e., healthcare data vs healthcare, payment, and other data with protected status), but also the status of the organization where data was accessed without authorization (i.e., covered or non-covered healthcare provider vs HIPAA covered entity or business associate). The difference may be subtle, but it can impact the breach notification requirements, the regulatory authority, and the penalty for a data breach.