DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Breaches have (advertising cost) consequences for hospitals

Posted on December 22, 2018 by Dissent

The following is the abstract of an observational study published on The American Journal of Managed Care. The TL;DR version seems to be that if entities were to spend more proactively on security, they might not have to pay about 64% more annually in advertising costs over the next two years following a breach.

Understanding the Relationship Between Data Breaches and Hospital Advertising Expenditures
Sung J. Choi, PhD; and M. Eric Johnson, PhD

A hospital data breach was associated with a 64% increase in annual advertising expenditures.

ABSTRACT

Objectives: To estimate the relationship between data breaches and hospital advertising expenditures.

Study Design: Observational data on hospital expenditures were analyzed using a propensity score–matched regression. The regression was specified as a generalized linear model using a gamma distribution and log link.

Methods: The study sample included Medicare hospitals captured by a survey of traditional media outlets. Hospitals included were nonfederal acute care inpatient hospitals from 2011 to 2014. Voicetrak provided data on hospital advertising expenditures. The Healthcare Cost Report Information System provided data on hospital characteristics and financial variables. Study groups were matched using observable characteristics, such as revenue, number of beds, discharges, ownership, and teaching status. The study excluded hospitals in Maryland and the US territories for financial reporting consistency. Data breaches included theft, loss, unauthorized access/disclosure, improper disposal, and hacking. Advertising expenditures were collected from media outlets including television, radio, newspapers and business journals, and local magazines in a city/metropolitan area.

Results: Breached hospitals (n = 72) were more likely to be large, teaching, and urban hospitals relative to the control group (unweighted n = 915). A data breach was associated with a 64% (95% CI, 7.2%-252%; P = .023) increase in annual advertising expenditures, holding observable characteristics constant.

Conclusions: Breached hospitals were associated with significantly higher advertising expenditures in the 2 years after the breach. Efforts to repair the hospital’s image and minimize patient loss to competitors are potential drivers of the increased spending. Advertising costs subsequent to a breach are another cost to the healthcare system that could be avoided with better data security.

Am J Manag Care. 2019;25(1):In Press

Read the full report on AJMC.

Category: Commentaries and AnalysesHealth DataU.S.

Post navigation

← California Department of Consumer Affairs suffers malware attack
Law firm notifies clients after backup drive stolen from lawyer’s car →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Trump Rewrites Cybersecurity Policy in Executive Order
  • AMI Group – Travel & Tours notice of ransomware attack
  • Resource: Insider Threat reports
  • Za: Cyber extortionist sentenced to eight years in jail
  • ICE takes steps to deport the Australian hacker known as “DR32”
  • Hearing on the Federal Government and AI
  • Nigerian National Sentenced To More Than Five Years For Hacking, Fraud, And Identity Theft Scheme
  • Data breach of patient info ends in firing of Miami hospital employee
  • Texas DOT investigates breach of crash report records, sends notification letters
  • PowerSchool hacker pleads guilty, released on personal recognizance bond

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Privacy Victory! Judge Grants Preliminary Injunction in OPM/DOGE Lawsuit
  • The Decision That Murdered Privacy
  • Hearing on the Federal Government and AI
  • California county accused of using drones to spy on residents
  • How the FBI Sought a Warrant to Search Instagram of Columbia Student Protesters
  • Germany fines Vodafone $51 million for privacy, security breaches
  • Malaysia enacts data sharing rules for public sector

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.