Final Project Milestone Two Impacts

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A data breach in the healthcare domain can give rise to serious implications for a

healthcare organization. The report has been designed detailing the impact of the breach

incident on the organization. In the initial section of the report, the laws that are in place to

prevent such incidents have been identified. The communication plan that will be adopted to

the most important federal laws that has been introduced to safeguard sensitive patient health

information from being disclosed to any unauthorized parties without their consent (Centers

for Disease Control and Prevention, 2018). According to HIPAA Breach Notification Rule it

is the responsibility of healthcare entities to notify patients in case their unprotected data has

been disclosed or breached in any manner (Hipaa Breach Notification Rule. American

Medical Association, 2021). Physicians need to play a proactive role while evaluating the

severity of a data breach incident by evaluating whether it meets HIPAA’s ‘low probability

of compromise’ threshold or not.

The Federal Trade Commission’s (FTC) Health Breach Notification Rule is another

important legal element that requires companies that have a mobile application, website or

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of technologies. In the specific scenario involving the ABC hospital, the risk assessment that

was conducted revealed that both the laws were violated since the security of sensitive

patient information was compromised.

of suitable and appropriate communication channels to inform the stakeholders i.e., whose

data have been breached in the incident. In this case, direct phone calls, emails or letters can

information has been compromised and how the incident took place. Then the ABC hospital

must make sure to communicate directly and immediately with the stakeholder. An honest

and straightforward approach must be adopted and it is also necessary to show remorse.

Ultimately, an official statement must be released by the healthcare facility explaining the

steps that were in place and the consequences of the data breach incident (Seh et al., 2020).

The expectations that have been set to ensure that the people are notified in a timely

manner include conducting a thorough risk assessment process and correctly identifying the

medical coder who was responsible for disclosing sensitive patient information.

Impact – Financial and non-financial impacts

The key financial impact of the data breach on the organization includes the

reduction in revenue generation ability due to a decline in patient number, and the

imposition of penalties due to the violation of laws relating to data breach in the healthcare

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domain. The cost relating to IT infrastructure has also increased since the facility will have

to integrate new and effective cybersecurity instruments. The main non-financial impacts of

the data breach incident on the ABC Hospital include reputational damage and a

considerable decline in patient trust on the hospital and the professionals that work in it. A

2019).

In order to ensure that there is a proper provision of top-level of healthcare safety,

quality and data security, the ABC Hospital can adopt several suitable federally sponsored

initiatives. For example, the knowledge, tools, and technologies offered by the Agency for

Healthcare Research and Quality (AHRQ) must be integrated. It will help to improve the

safety of care solutions provided by the facility (Kronick, 2016). The National Quality

Strategy (NQS) must be adopted to achieve better health by focusing on quality and safety

aspects.

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Health Sector Cybersecurity Coordination Center. (2019). A Cost Analysis of Healthcare

Hipaa Breach Notification Rule. American Medical Association. (2021). Retrieved May 28,

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