What are the consequences of violating HIPAA?
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What are the Consequences of Violating HIPAA?

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Violating the HIPAA Rule is no joke, especially for business entities. Many of us might be aware of our rights to data privacy, but it is also better to be well-informed of the consequences you might face if you break these standards imposed by the law. You might be wondering what the consequences of violating HIPAA for your business are. Well, fines and penalties are there to name a few, but legal actions and even bankruptcy can also be a risk you might face if proven guilty of breaching these guidelines. 

We wish to inform you what will happen if you break the HIPAA Rules further. Read more to learn more about this issue and help your business safeguard itself from violating HIPAA.

Thus, what are the consequences of violating HIPAA Rules for your business? 

The penalties for violating the HIPAA rules are based on the nature of the violation, the harm it caused, and the efforts done by the covered entity or business associate to alleviate the breach and the impact it creates. 

To give you a summary of the consequences of HIPAA violations you might face in case of a breach, here are 3 of the most common on the list.

  • Financial penalties

The most common consequence of breaking HIPAA is the financial penalty and it varies depending on the severity of the negligence’s impact. A health organization might be fined several thousand per violation and can reach up to $1.5 million annually if the investigation ruled out that it occurred on purpose. 

  • Termination of an employment contract

In a HIPAA violation case, multiple employees lost their jobs. Whether the violation done is unintentional negligence, their work ethics will be questioned and might affect the business’ trust ratings. This will create a huge blow to your business’s reputation if you, as an employer, chose to retain the responsible party. 

  • Criminal charges

Another consequence of violating HIPAA, whether it’s complete negligence or malicious intent, is criminal charges. If the damage done is severe enough, the person responsible can face criminal charges along with a time in jail of up to 10 years. Criminal charges will be based on the intentions of the person responsible for following the guidelines imposed by the HIPAA Privacy Law.

With the consequences listed above, you now have a better picture of what your business might face if you happen to break the HIPAA rules. Regardless of the severity of the case, the impact it can do on your business is no joke at all. 

Therefore, to answer “what are the consequences of violating HIPAA to your business”, it all comes down to your company’s bad reputation, fines and penalties, and employee turnover.  From an in-depth perspective in business, it means an expense that, if laid down to the severe spectrum of the HIPAA Privacy Law, can lead your business to bankruptcy. Thus, it is better to be very particular in implementing HIPAA rules in your business and avoid all the hassle it brings by violating the HIPAA Privacy Law.