Health care providers that experience major data breaches face more than the cost of the breach itself. They also stand to lose customers.

A survey of more than 1,000 adult patients by TransUnion Healthcare found that half of those surveyed would consider switching providers if their current one experienced a data breach. When asked whether they would avoid doing business with a provider that had a breach, 65 percent answered in the affirmative.

When viewed by age, a larger number of young (18-34) respondents said they would switch: 73 percent. Older consumers were far less likely to do so. According to this survey, two-thirds of those ages 55 and older said they'd stick with their provider despite a breach.

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"Older consumers may have long-standing loyalties to their current doctors, making them less likely to seek a new health care provider following a data breach," said Gerry McCarthy, president of TransUnion Healthcare. "However, younger patients are far more likely to at least consider moving to a new provider if there is a data breach."

Among other findings from the survey:

  • 76 percent would expect to be notified of a breach within one to three days of its occurrence, with 46 percent saying they should be notified within 24 hours;

  • 72 percent said they would expect a breached provider to offer them free credit monitoring for a year following a breach;

  • 59 percent said they would expect the breached provider to offer a breach hotline;

  • 55 percent said they felt they should be able to view details of the breach online.

"The hours and days immediately following a data breach are crucial for consumers' perceptions of a health care provider," McCarthy said. "With the right tools, hospitals and providers can quickly notify consumers of a breach, and change consumer sentiments toward their brand."

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.