Running Head: FEATHERFALL MEDICAL CENTER
Milestone 2: Featherfall Medical Center
Nicoletta Serrecchia
Southern New Hampshire University
HIM-500-Q3140
Running Head: FEATHERFALL MEDICAL CENTER
Milestone 2: Featherfall Medical Center
There is no disagreement in that fact that Featherfall Medical Center has many issues that
need to be worked out. If these issues are not worked out they could impact the finances, daily
operations, and security of the institution. There is a lot on the line for Featherfall and they need
to get their regulations in order to move forward. Violating health regulations and laws regarding
technology could impact the finances of this institution in multiple ways. Since they have already
lost a lot of money from not meeting regulations if this continues it will only get much worse as
it goes on. According to HIPAA Journal (2021), "OCR (Office of Civil Rights) has had the power
to issue financial penalties and/or corrective action programs, to covered entities that fail to
comply with HIPAA" (pg. 1). The penalty arrangement is based off different tier levels based on
specific factors and the seriousness of the violation. It is discussed that financial penalties are
intended to act as a deterrent to prevent the violation of HIPAA laws, while also ensuring
covered entities are held accountable for their actions (HIPAA Journal, 2021). Back in 2019, the
average cost for a data breach in the USA was 15 million. The cost has increased from 2014-
2019 by 12% (Seh et al., 2020 pg. 133).
Along with the financial impact, there is also a huge impact on the daily operations of the
institution. For example, with each of the employees involved there are consequences for
violating regulations and not being ethical and HIPAA compliant. These consequences might
include termination, suspension, and demotion. These are all issues that can effect the daily
operations in the institution. Without the full staff, supervisors, leaders, front end staff, it will
make matters worse by causing confusion, and lack of routine.
Violating these health regulations and laws with technology can also have an impact on
the security of health information. It has been mentioned that the staff is not well trained on the
Running Head: FEATHERFALL MEDICAL CENTER
computer systems, they don't properly use them, and they even are using them in inappropriate
ways. When patients give their personal information to healthcare facilities, they are trusting the
with their life. All of their legal documents, personal information, insurance information,
address, and more. If patients were to know that Featherfall Medical Center wasn't acting ethical
or being HIPAA compliant, they would lose a lot of their patients and that can have various
impacts on the medical center. According to Seh et al. (2020), "The total number of healthcare
records that were exposed, stolen, or illegally disclosed in the year 2019 was 41.2 million in 505
healthcare breaches" (pg. 133). As technology evolves, industries have to become more secure
and have to stress to their staff to be vigilant and HIPAA compliant. Technology increases, bu