Unfortunately this timeline has made healthcare records easy pickings for cybercriminals. Since 2010, incidents of medical identity theft have doubled, according to a survey conducted by the privacy-focused Ponemon Institute. A second report by the Identity Theft Resource Center on breaches in the first four months of 2015 showed that one-third of all data breaches by industry occurred in healthcare: 82 instances in total, exposing over 1.7 million records. Modern Healthcare, in fact, estimated that the medical records of almost one in eight Americans have been compromised. The American Action Forum estimates that all the breaches since 2009 have cost the healthcare system $50.6 billion. Data breaches have been so bad that Blue Cross Blue Shield has announced that they will offer their customers identity protection in 2016.
Figure 1- Number of personal data breach incidents by industry over time (http://www.gemalto.com/brochures-site/download-site/Documents/Gemalto_H1_2015_BLI_Report.pdf)
According to a report by the medical research firm Kalorama Information, the problem will worsen over time because the $25B electronic medical record industry is predicted to grow at a 7-8 percent clip in the coming year. Much of the growth is spurred by the 2009 Health Information Technology for Economic and Clinical Health (HITECH) Act, which offered financial incentives for using electronic records until 2015 and penalties for not using EMR thereafter.
Is EMR worth the cost in privacy and peace of mind?
The value of the technology has been heralded as improved diagnosis and treatment through better information access and sharing. Researches, however, have found that the vast majority of providers don’t share electronic patient data outside their own practice. According to a study by the Agency for Healthcare Research and Quality, just 14 percent of providers were sharing data with other providers in 2013 Psychology Today notes that many medical centers’ outpatient