Health I.T. Security Costs by City

Health I.T. Security Costs by City 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.

Variable Cost Analysis Variable Cost Analysis

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.

Security Spending Jump Security Spending Jump

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.

Growing Problem Growing Problem

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.

Scaled Estimates Scaled Estimates

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. .

Most Expensive Locales Most Expensive Locales

New York $32,678,568

San Francisco $27,811,099

Los Angeles $25,797,759

Stamford, Conn. $25,515,566

Newark $24,629,080

San Diego $24,288,263

Boston $23,174,826

Lowest Cost Locales Lowest Cost Locales

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

Louisville $18,340,307

Line-Item Snapshot: Labor Costs Line-Item Snapshot: Labor Costs

Average annual labor costs plus fringe benefits per security employee.

New York $76,722

Boston $75,717

Louisville $64,935

Atlanta $64,637

Miami $63,797

Sioux Falls $58,519

Line-Item Snapshot: Annual Heating and Air Conditioning Costs Line-Item Snapshot: Annual Heating and Air Conditioning Costs

New York $1,118,528

Jacksonville, Fla. $616,741

Boston $604,985

Los Angeles $590,286

Minneapolis $413,404

Sioux Falls $396,758

Mid-Continent Shift Mid-Continent Shift

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 nation’s largest processor of employee Social Security, Medicare and payroll data, opened a major data security center in Sioux Falls.

More Information More Information

For more information about the report, “Healthcare Services Industry: A Comparative Cost Analysis for Information Assurance Operations,” go to

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