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Cloud Adoption Coming Slowly but Surely in Healthcare Industry

Despite the popularity of the cloud in other industries, healthcare adoption has been slower. Healthcare professionals identify security and privacy concerns as reasons for low adoption rates. Among the reasons is the disproportionately higher cost of investigating data breaches.

According to Ponemon Institute, the average cost-per-record in a healthcare breach is $402 – 80% higher than the U.S. average, and about twice the average of the retail sector. Therefore, having an organization other than itself “in control” of the protected health information (PHI)-laden data was seen as a risk that was not worth taking. However, the 2013 introduction of the Health Insurance Portability and Accountability Act (HIPAA) Omnibus final rule dramatically changed the responsibility paradigm as it required healthcare service providers, e.g. those “other organizations,” to similarly be responsible for properly using and processing data containing PHI. This regulatory change, in turn, provided some key protections and controls for healthcare organizations, which created a more receptive attitude for considering leveraging the cloud.

Yes, HIPAA changes did contribute to facilitating the change in attitude for cloud consideration within healthcare. However, when considering the value proposition for leveraging the cloud, organizations typically consider the primary drivers of faster deployment, scalability, cost / IT investment, and access to new advanced IT capabilities.

In our guide, 4 Drivers for Healthcare Cloud Adoption, we explore additional drivers for cloud adoption in healthcare and provide examples of clients that have successfully moved to the cloud.

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Chris Donahue

Chris Donahue is a director in Perficient's national healthcare practice. He has more than 25 years of technology experience including 20 years in the healthcare industry. Chris provides leadership in revenue cycle and clinical analytics solutions for both providers and health plans and is a trusted adviser to c-level executives.

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