Health I.T. Security Costs by City
The Boyd Company has put together an analysis of the costs of operating a health care data security center in U.S. cities. Following are a few nuggets from its report, scheduled to be released next week.
The Boyd study analyzes major geographically-variable operating costs most critical to the decision about where to locate health care data security facilities. Costs include skilled labor in health information management and data security; land costs; construction costs; taxes; utilities; corporate travel and other occupancy costs.
The cost study focuses on the health care information assurance field and those I.T. companies and business units dedicated to preventing security breaches and computer crimes like medical record fraud, insurance scams and the identity theft of patients and policyholders.
Boyd estimates that health care data security spending in 2012 will top $40 billion, an increase of 22 percent from 2011 levels. In addition, the company projects that spending will top $70 billion by 2015.
According to research from Redspin Inc., breaches of protected health information (PHI) increased 97% in 2011 over 2010 levels. The numbers also show that 19 million patient health records were affected. In at least three states, attorneys general have successfully filed actions in cases of large-scale breaches.
Annual costs in the study are scaled to a health care data security center employing 150 workers and occupying 150,000 sq. ft. of newly constructed space. .
New York $32,678,568
San Francisco $27,811,099
Los Angeles $25,797,759
Stamford, Conn. $25,515,566
San Diego $24,288,263
Sioux Falls, SD $17,053,792
Tulsa, OK $17,755,489
Ft. Walton/Destin, Fla $17,873,628
Pensacola, FL $18,030,147
Lee County, FL $18,119,456
Ft. Wayne, IN $18,281,456
Average annual labor costs plus fringe benefits per security employee.
New York $76,722
Sioux Falls $58,519
New York $1,118,528
Jacksonville, Fla. $616,741
Los Angeles $590,286
Sioux Falls $396,758
Regionally, mid-continent states are becoming attractive due to lower land costs for data security center sites and their desired buffer zones, preferred Central time zone, relative insulation from natural disasters and affordable and reliable energy, including renewable energy technologies such as wind power, which is highly coveted by the green-conscious health care services industry.
Mid-continent states like Iowa, Texas, Oklahoma and South Dakota have recently attracted major new data security investments: Google and Microsoft have selected Iowa for major new data center facilities. ADP, the nations largest processor of employee Social Security, Medicare and payroll data, opened a major data security center in Sioux Falls.
For more information about the report, Healthcare Services Industry: A Comparative Cost Analysis for Information Assurance Operations, go to www.theboydcompany.com/
Top 10 Big Data Companies (By Revenue)
10 LinkedIn Red Flags Hiring Managers Should Look For
10 Big Data Career Killers
What You Need to Know About Meaningful Use Audits
Gartner's Top 10 Cloud Myths
Debunking 5 of the Biggest Data Myths
How Small Healthcare Organizations Can Fight ID Theft
Surviving a HIPAA Privacy/Security Audit