Medical practices need to remain compliant with HIPAA to avoid severe financial penalties, which can reach up to $50,000 per violation and total millions annually, potentially jeopardizing the practice’s financial stability. Non-compliance also risks legal consequences, including civil lawsuits and criminal charges, which can result in fines, professional sanctions, or even imprisonment.

Beyond financial and legal issues, failing to protect patient information damages the practice’s reputation, leading to loss of patient trust and business, ultimately threatening the practice’s sustainability and competitive position in the healthcare market.