If you're a healthcare org with minimum security & compliance support, this can help you better understand the choices.

The HIPAA Compliance Math

The HIPAA compliance choice is yours. But the math is simple.

 

HIPAA compliance costs are far lower than the cost of a security breach and the cost of non-compliance.

The HIPAA Compliance Math

The HIPAA compliance choice is yours. But the math is simple.

HIPAA compliance costs are far lower than the cost of a security breach and the cost of non-compliance.

If you’re a smaller healthcare org with minimum security & compliance support, this can help you better understand the choices. 

Who Does HIPAA Compliance Cover?

HIPAA applies to two categories of organizations – and the penalties hit both equally hard.

Covered Entities

Organizations that create or transmit PHI electronically as part of standard healthcare transactions.

Hospitals and Health Systems

Physician Practices, Clinics, and Dental Offices

Pharmacies and Laboratories

Health Insurance Companies and HMOs

Medicare, Medicaid, and Government Health Programs 

Healthcare Clearinghouses

IT and Managed Service Providers (MSPs)

Cloud Hosting and SaaS Vendors

Medical Billing and Coding Companies

Business  Associates

Any organization that handles PHI on behalf of a covered entity.

EHR/EMR Platform Providers

Legal, Accounting, and Consulting Firms

Data Analytics and Marketing Companies

Document Storage and Destruction Services

As of 2025, HHS estimates there are approximately 822,600 covered entities and over 1,000,000 business associates subject to HIPAA.

If your organization creates, receives, stores, processes, or transmits protected health information – you must comply with HIPAA.

And since the HITECH Act, business associates are directly liable for violations and can be fined by OCR independently.

Who Does HIPAA Compliance Cover?

HIPAA applies to two categories of organizations – and the penalties hit both equally hard.

Covered Entities

Organizations that create or transmit PHI electronically as part of standard healthcare transactions.
Hospitals and Health Systems
Physician Practices, Clinics, and Dental Offices
Pharmacies and Laboratories
Health Insurance Companies and HMOs
Medicare, Medicaid, and Government Health Programs
Healthcare Clearinghouses
EHR/EMR Platform Providers

Business  Associates

Any organization that handles PHI on behalf of a covered entity.
Legal, Accounting, and Consulting Firms
Data Analytics and Marketing Companies
Document Storage and Destruction Services

Do You Think HIPAA Compliance Is Costly?

Let us make you think again

Pricing Section - Exact Clip Path
Risk Analysis (SRA)
Penetration Test
MFA Implementation
Vendor Access Review / Deprovisioning
Email Security & Phishing Protection
HIPAA Security Rule Compliance Program
$5K – $15K
Cost of Doing

OCR’s #1 cited violation. The foundation of every HIPAA investigation.


Required annually and is the single most scrutinized element in any OCR investigation.

Recent penalties include Northeast Radiology ($350K), Gulf Coast Pain Consultants ($1.19M), and Tennessee Diagnostic Medical Imaging ($3M).

$25K – $3M
Cost of Not Doing

Do You Think HIPAA Compliance Is Costly?

Let us make you think again

$5K – $15K

Risk Analysis (SRA)

$25K – $3M

$10K – $40K

Penetration Test

$350K – $1.5M

$5K – $20K

MFA Implementation

$10M - $1Bn

$2K – $8K

Vendor Access Review / Deprovisioning

$1.19M – $3.50M

$5K – $15K

Email Security & Phishing Protection

$600K – $3M

$15K – $50K

HIPAA Security Rule Compliance Program

$1.19M - $3.50M

Before You Say No Again

We need you to reconsider what might be stopping you. Let’s explore these questions that stall the security & compliance plans of scores of SMBs.

We're a small practice. Would OCR really come after organizations our size?

Yes. OCR has fined solo dental practices, small radiology groups, and rural EMS providers – some for as little as $10,000, others for over $1M. The Risk Analysis Initiative launched in 2024 doesn’t have a size threshold. If you handle PHI, you’re in scope.

What should we prioritize if we can only afford partial compliance this year?

Start with the Security Risk Analysis – it’s the single item OCR checks first in every investigation. Then implement MFA across all systems that touch ePHI. Those two moves alone close the most common attack vectors and address the most frequently penalized violations.

Is there a minimum viable compliance program for a 20–50 person org?

Yes. A realistic starting program – SRA, policies, basic technical safeguards, employee training, and vendor BAAs – runs $15K–$30K in the first year. That’s less than one month’s salary for a compliance hire, and a fraction of the $7.42M average breach cost.

What could trigger an OCR investigation?

Three things: a breach report affecting 500+ individuals (automatically posted to OCR’s public “Wall of Shame”), a patient complaint, or a proactive audit. OCR confirmed in 2025 that its third round of compliance audits is underway, targeting 50 covered entities and business associates.

Does having a compliance program reduce the penalty if we do get breached?

Significantly. OCR considers documented good-faith compliance efforts when determining penalties. Organizations with an active SRA, written policies, and evidence of ongoing security measures consistently receive lower fines – and are more likely to reach a settlement rather than face a full civil monetary penalty.

Does HIPAA require penetration testing?

Not explicitly, yet. The current rule requires “periodic technical evaluations,” and NIST guidance recommends pen testing as the primary method. But the proposed 2025 Security Rule update would make annual pen testing mandatory for all covered entities and business associates. Final rule is expected May 2026. Smart organizations are getting ahead of it now.

What's the first thing OCR looks for during an investigation?

Your Security Risk Analysis. It appears as a finding in the majority of OCR enforcement actions. If you can produce a current, documented SRA with an actioned remediation plan, you’ve already separated yourself from most of the organizations OCR penalizes.

Can we handle this in-house or do we need outside help?

Depends on your team. If you have someone who understands both the HIPAA Security Rule and your technical environment, you can manage the program internally with compliance tooling. Most SMBs find they need outside help for the SRA, pen testing, and initial policy development – then maintain it in-house after that.

Are we a covered entity, a business associate, or both?

If you provide healthcare services and transmit PHI electronically, you’re a covered entity. If you handle PHI on behalf of a covered entity – as an MSP, billing company, SaaS vendor, cloud host, or consultant – you’re a business associate. Some organizations are both. Either way, you’re directly liable under HIPAA since the HITECH Act.

We haven't been breached yet. Why spend the money now?

Because 58% of healthcare organizations still lack a comprehensive compliance program – and OCR is actively narrowing that gap through audits and enforcement. The average breach takes 279 days to detect. So, if you do get breached, it will be more expensive for you, than spending money right now, and preventing a breach.

Before You Say No Again

We need you to reconsider what might be stopping you. Let’s explore these questions that stall the security & compliance plans of scores of SMBs.

We're a small practice. Would OCR really come after organizations our size?

Yes. OCR has fined solo dental practices, small radiology groups, and rural EMS providers – some for as little as $10,000, others for over $1M. The Risk Analysis Initiative launched in 2024 doesn’t have a size threshold. If you handle PHI, you’re in scope.

What should we prioritize if we can only afford partial compliance this year?

Start with the Security Risk Analysis – it’s the single item OCR checks first in every investigation. Then implement MFA across all systems that touch ePHI. Those two moves alone close the most common attack vectors and address the most frequently penalized violations.

Is there a minimum viable compliance program for a 20–50 person org?

Yes. A realistic starting program – SRA, policies, basic technical safeguards, employee training, and vendor BAAs – runs $15K–$30K in the first year. That’s less than one month’s salary for a compliance hire, and a fraction of the $7.42M average breach cost. 

What could trigger an OCR investigation?

Three things: a breach report affecting 500+ individuals (automatically posted to OCR’s public “Wall of Shame”), a patient complaint, or a proactive audit. OCR confirmed in 2025 that its third round of compliance audits is underway, targeting 50 covered entities and business associates.

Does having a compliance program reduce the penalty if we do get breached?

Significantly. OCR considers documented good-faith compliance efforts when determining penalties. Organizations with an active SRA, written policies, and evidence of ongoing security measures consistently receive lower fines – and are more likely to reach a settlement rather than face a full civil monetary penalty.

Does HIPAA require penetration testing?

Not explicitly, yet. The current rule requires “periodic technical evaluations,” and NIST guidance recommends pen testing as the primary method. But the proposed 2025 Security Rule update would make annual pen testing mandatory for all covered entities and business associates. Final rule is expected May 2026. Smart organizations are getting ahead of it now.

What's the first thing OCR looks for during an investigation?

Your Security Risk Analysis. It appears as a finding in the majority of OCR enforcement actions. If you can produce a current, documented SRA with an actioned remediation plan, you’ve already separated yourself from most of the organizations OCR penalizes.

Can we handle this in-house or do we need outside help?

Depends on your team. If you have someone who understands both the HIPAA Security Rule and your technical environment, you can manage the program internally with compliance tooling. Most SMBs find they need outside help for the SRA, pen testing, and initial policy development – then maintain it in-house after that.

Are we a covered entity, a business associate, or both?

If you provide healthcare services and transmit PHI electronically, you’re a covered entity. If you handle PHI on behalf of a covered entity – as an MSP, billing company, SaaS vendor, cloud host, or consultant – you’re a business associate. Some organizations are both. Either way, you’re directly liable under HIPAA since the HITECH Act.

We haven't been breached yet. Why spend the money now?

Because 58% of healthcare organizations still lack a comprehensive compliance program – and OCR is actively narrowing that gap through audits and enforcement. The average breach takes 279 days to detect. So, if you do get breached, it will be more expensive for you, than spending money right now, and preventing a breach.

Not Sure How To Start?

We built a HIPAA compliance checklist that maps every HIPAA control to the specific evidence an auditor will ask for.

Refer this to get started for your compliance.
Download the Checklist
Download the Checklist

Our Concierge Approach to HIPAA Compliance

We manually validate all your controls and prepare evidence that holds up your claims in an audit. 

Speak to Your Concierge
Speak to Your Concierge