1. November, 2012 What’s The Rush? Learn Why Now is the Time to Become HIPAA Compliant

2. Major Trends YOU NEED TO BE AWARE OF COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. Increased data breaches in healthcare organizations. Increased crackdown on compliance. A rush to make the switch from paper to digital records since incentives are now being significantly reduced. 2012 This past year brought major changes to the healthcare regulations industry. 2

3. Civil penalties levied by HHS are only a fraction of the total cost Source: http://www.hhs.gov/ocr/privacy/hipaa/enforcement/examples/index.htmlhttp://www.hhs.gov/ocr/privacy/hipaa/enforcement/examples/index.html COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 3 $ 1.5 MILLION What is at Stake 2012 PENALTIES $ 1.7 MILLION Alaska DHSS settles case Cause: USB drive stolen from an employee’s car Massachusetts provider settles case Cause: stolen laptop with unencrypted data BCBS Tennessee settles case Cause: 57 unencrypted hard drives stolen from a leased facility

4. Data breaches in healthcare organizations up 32% over previous year 96% of all healthcare providers had at least one data breach in last 2 years Average economic impact of breach was $2.2 million Data breach lead to: –Loss of time and productivity (81%) –Loss of reputation (78%) –Loss of patient goodwill (75%) Average lifetime value of one lost patient = $113,400 COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 4 Data Breaches 2011 PONEMON STUDY Key Research Findings Source: Second Annual Benchmark Study on Patient Privacy & Data Security 32% 96% 81% 75% 78% $2.2 million $113,400

5. AGENCYRECORDS LOST Utah Department of Health *780,000 Emory Healthcare - Atlanta315,000 South Carolina Department of Health228,000 Howard University Hospital – D.C.34,503 St. Joseph Health System – Ca. *31,800 Indiana Internal Medicine Consultants20,000 Our Lady of the Lake Regional Medical Center – La.17,000 Memorial Healthcare System – South Fl.9,497 Kansas Department of Aging100 University of Arkansas for Medical Sciences7,000 Total records lost for just the top 10 medical breaches - 1,442,900 * Denotes loss due to hacker COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 5 Top 10 Medial Breaches Q1 & Q2 2012

6. There is an urgency to digitize health information coupled with increased concern that protected health information (PHI) meets industry standards of security. COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 6 Compliance Crackdown AUDITS & FINES Compliance Audits Initiated in November 2011 Random selection Hospitals, physician practices, and other healthcare entities Fines & Reputation Increase in # of settlements Negative publicity

7. It pays to get started early! To get the maximum incentive payment, Medicare eligible professionals must have begun participation by 2012. Important! For 2015 and later, Medicare eligible professionals, eligible hospitals, and CAHs that do not successfully demonstrate meaningful use will have a payment adjustment in their Medicare reimbursement. COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 7 The Stimulus TO PROMOTE THE USE OF EHR EHR Incentives Program Initiated in 2009; participation began in 2011 Incentives paid to eligible professionals, hospitals and CAHs Up to $44,000 in incentives Over a 5 year period If adopt a certified Electronic Medial Record (EMR) approach All EHR by 2015

8. COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED. 8 EHR Incentives

9. Money How much would it cost to do this myself? Time Can I rapidly respond to security events? Talent What else could my staff be doing? 9 How We Can Help HOSTWAY + STILLSECURE COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED.

10. 10 HIPAA Essential FROM HOSTWAY COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED.

11. 11 www.hostway.com/managed-security/compliance/hipaa-compliance.php Free HIPAA Security Consultation Review of your existing environment’s security measures coupled with a one-on-one demo of StillSecure security solutions Phone: 866-HOSTWAY (866-467-8929) Email: sales@hostway.comsales@hostway.com Facebook: https://www.facebook.com/Hostwayhttps://www.facebook.com/Hostway Twitter: https://twitter.com/hostwayhttps://twitter.com/hostway LinkedIn: http://www.linkedin.com/company/hostway-corporationhttp://www.linkedin.com/company/hostway-corporation. Contact Us Today FOR A FREE CONSULTATION Learn More Special Offer Contact Us COPYRIGHT ©2013 SILVERSKY®. ALL RIGHTS RESERVED.