How Much Does HIPAA Compliance Cost?

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Estimating HIPAA compliance cost in commonality is not an accurate and sensible way. Depending upon the security complexities of health organizations, the cost may vary. So concluding a unified cost estimation is not the right thing which was earlier done by HHS as $ 1040 per organization just after the final HIPAA rule, 2013 came into effect.

Later the merger of this Act with Security Rule, 2003 opened up 75 new requirements and 254 validation points for organizations with a wide range of resource requirements resulting rise in cost. Thus costing varies with the alignment of these resource requirements. Let’s have a glance at variables affecting HIPAA Compliance Cost:

Variables affecting HIPAA Compliance Cost

Organization type

Hospital, HIE, healthcare clearinghouse, or another type of healthcare provider, each can have varying amounts of protected health information (PHI) and risk levels.

Organization size

The larger the organization, the more HIPAA compliance cost it has. An extended number of workforces, programs, processes, computers, PHI, and departments end up adding more HIPAA cost.

Organization’s culture

If management is smart enough, takes a proactive decision by choosing cyber security program. With a delay in dedicating budget to security, compliance with HIPAA cost goes high because of the wider gap to make up.

Organization’s environment

The type of medical devices, computers’ brand, firewalls and the model of backend servers, etc. also affect HIPAA compliance cost.

Organization’s dedicated HIPAA workforce

A dedicated HIPAA team is needed to know how far you are from closing the HIPAA gap. This will also affect HIPAA compliance cost.

An estimated outline for HIPAA cost


  • Small organization – HIPAA may cost:


1.Risk Analysis and Management Plan ~$2,000

2.Remediation ~ $1,000 – $8,000

3.Training and policy development ~ $1,000-2,000

Total: $4,000 – $12,000


  • Medium/large Organization – HIPAA may cost:


1.Onsite audit ~ $40,000+

2.Risk Analysis and Management Plan ~ $20,000+

3.Vulnerability scans ~ $800

4.Penetration testing ~ $5,000+

5.Remediation ~ Varies based on where entity stands in compliance and security

6.Training and policy development ~ $5,000+

Total: $50,000+, depending on the entity’s current environment

Wrapping up

The very fact that you need to keep in mind is the variables that can bring fluctuations in cost estimation. Taking an idea is just the main objective of this write-up. Talking to experts of the industry can be proven as a better conclusion.


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