What is the Cost of HIPAA Compliance?

Cost of HIPAA Compliance

There are many factors to consider when determining what the cost of HIPAA compliance will be for your organization. While each business has to meet the same HIPAA requirements, the way in which they do so varies. Additionally, the type of service that you use to meet your compliance requirements can make a huge difference in your costs.

What Factors Contribute to Cost

Variables such as your organization type, size, culture, environment, and workforce will factor into your overall cost to comply with the regulation.

  • Organization Type and Size: depending on your organization type (covered entity, business associate, MSP) you have different levels of access to protected health information (PHI). Larger organizations also generally have more employees and devices that add to your risk. Since a large portion of being HIPAA compliant is safeguarding PHI, the more systems that you have that “touch” PHI contribute to your organization’s level of risk, and in turn your cost to mitigate those risks.
  • Culture and Environment: organizations that instill a culture of compliance that trickle down to their work environment will have a lower cost for remediation. When businesses have a dedicated security budget, they will generally already have many of the security protections in place required to meet HIPAA standards.
  • Dedicated HIPAA Workforce: many HIPAA standards take time and effort to implement. Having employees dedicated to implementing these standards will lower your cost of HIPAA compliance as the time it takes for you to implement them will be significantly less.

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Using a Consulting Service for HIPAA Compliance

When using a service such as a consulting company, the estimated cost of HIPAA compliance ranges from $4,000 to $78,000+ depending on your organization’s size and your current environment.

If you are a single-location healthcare organization with a small number of employees using a HIPAA consulting service would cost:

  • $2,000 for Risk Analysis and Management Plan
  • $1,000 – $8,000 for Remediation 
  • $1,000 – $2,000 for Training and Policy Development

Total: $4,000 – $12,000

If you are a multi-location healthcare organization or you have a large number of employees using a HIPAA consulting service would cost:

  • $20,000+ for Risk Analysis and Management Plan 
  • $8,000+ for Remediation (dependent on your current security posture)
  • $5,000+ for Training and Policy Development
  • $40,000+ for Onsite Audit
  • $800 for Vulnerability Scans
  • $5,000+ for Penetration Testing

Total: $78,000+

There are also some companies that offer pieces of HIPAA compliance for a lower cost, but that won’t make you fully compliant. 

These companies charge:

$15,000 for HIPAA Compliance Assessment which includes:

  • Scoping
  • Project Management
  • Risk Assessment
  • Testing and Analysis
  • Reporting

$10,000 for HIPAA Gap Assessment which includes:

  • Scoping
  • Project Management
  • Risk Assessment
  • Controls Identification
  • Testing and Analysis
  • Remediation Roadmap