By Gil Sever  |  Posted 2010-03-30 Print this article Print


With the advent of the Health Information Technology for Economic and Clinical Health (HITECH) Act-passed as part of the American Recovery and Reinvestment Act of 2009 (ARRA)-special incentives are accelerating the adoption of electronic record systems and exchanges between providers.

The government is investing $20 billion in health IT infrastructure and Medicare and Medicaid incentives to encourage doctors and hospitals to use the HITECH Act to electronically exchange patient health information.

However, with more electronic records comes more PHI that needs protection. The HITECH Act requires that an individual be notified if there is an unauthorized disclosure or use of his or her health information. This can be a costly process. These new regulations and compliance issues provide businesses with a reason for implementing data security solutions.

According to the Ponemon Institute, data breaches have serious financial consequences on an organization. Costs can also include direct expenses such as engaging forensic experts, outsourced hotline support, free credit monitoring subscriptions, and discounts for future products and services. According to the Ponemon Institute's Fourth Annual U.S. Cost of Data Breach study, the average cost of a data breach rose to $202 from the previous year's $197 per customer record.

In addition, they found that 75 percent of large corporations surveyed have suffered data leakage, with an average cost of $5 million per incident. With these huge sums of money associated with data loss and new regulations being implemented on a regular basis, the need for data protection has become top of mind for businesses. With the implementation of a DLP solution, a business is less likely to be non-compliant and more data will be secure.

Gil Sever is Founder and Chief Executive Officer of Safend. Prior to founding Safend, Gil held several senior-level positions within the security industry. Gil served as COO of ECTEL, a leading provider of monitoring solutions for IP, telephony and cellular networks. He also held the position of Israel Site Manager and VP of R&D for Aeroscout (formerly Bluesoft), a company focusing on WiFi and Bluetooth location finding. Prior to his positions in the private sector, Gil served 18 years in the Israeli Defense Forces where he managed strategic planning and large-scale R&D groups and projects in the areas of communications, communication protocols and data security. Gil has a Bachelor of Science degree in Electrical Engineering from the Technion (Israel Institute of Technology) and a Master of Science degree in Electrical Engineering from Tel Aviv University. He can be reached at

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