Re: Health Industry Under-Prepared to Protect Patient Privacy, Says PwC Report

In response to the Security Week article: Health Industry Under-Prepared to Protect Patient Privacy, Says PwC Report

The US is facing an unprecedented privacy crisis. The healthcare industry is extremely negligent about protecting data security and privacy (patient consent). At the same time 3/4 of the healthcare industry further risks patient privacy by selling or intending to sell data for secondary uses. Data theft and sales are driven in large part because, “Digitized health data is becoming one of the most highly valued assets in the health industry.”

  • Sixty-one percent of pharmaceutical and life sciences companies, 40 percent of health insurers, and 38 percent or providers currently share information externally. Of those organizations that share data externally, only two in five pharmaceutical and life sciences companies (43 percent) and one in four insurers (25 percent) and providers (26 percent) have identified contractual, policy or legal restrictions on how the data can be used.
  • Most corporations using patient data lack an effective consent process, “Only 17 percent of providers, 19 percent of payers and 22 percent of pharmaceutical/life sciences companies have a process in place to manage patients’ consent for how their information can be used.”

It’s a double whammy—not only is sensitive health information at high risk of misuse, sale, and breach INSIDE healthcare organizations, it’s also sold to OUTSIDE organizations that lack effective security and privacy measures.

  • “Nearly three quarters (74 percent) of healthcare organizations surveyed said they already do or intend to seek secondary uses for health data; however, less than half have addressed or are in the process of addressing related privacy and security issues.”

PriceWaterhouseCoopers surveyed 600 executives from US hospitals and physician organizations, health insurers, and pharmaceutical and life sciences companies. Data security and privacy practices were abysmal despite new enforcement efforts by the Administration, and despite hundreds of major data breaches compromising the privacy of millions of Americans.

Why aren’t Congress and the public outraged that the privacy and security of health information is so bad? If the banking industry operated like this there would be MAJOR oversight hearings and new laws.

The idea that today’s electronic healthcare systems and data exchanges safeguard health data is simply wrong. Clearly federal and state oversight and penalties for failure to protect the most sensitive personal data on earth need to be increased.