Every 11 seconds, another Australian medical practice gets hit by ransomware. When a healthcare organisation suffers a data breach, the impact goes far beyond lost files or IT downtime. It affects patients, staff, trust and in some cases, lives.
Our healthcare sector has topped the list for reported data breaches every year since the Notifiable Data Breach (NDB) scheme began. That trend isn’t slowing down, and the costs, both financial and reputational, are escalating.
The growing threat to healthcare data
Healthcare organisations hold a unique mix of personally identifiable information (PII) and sensitive health records — everything from Medicare numbers to diagnoses and treatment histories. To a cyber criminal, that data is gold.
Recent years have shown how vulnerable the sector can be:
The Medibank Private breach in 2022 exposed the records of 9.7 million people, including deeply personal health data later leaked online.
A ransomware attack on Australian Clinical Labs (Medlab) compromised the details of over 223,000 patients and staff.
Many hospitals and clinics across the country have also faced phishing and ransomware incidents that disrupted clinical systems and delayed patient care.
Healthcare remains an attractive target because it is data-rich, highly connected, and often operates with tight budgets and ageing IT systems. Add to that the sector’s life-critical nature, where downtime can literally cost lives, and it’s easy to see why attackers view it as low-hanging fruit.
The real cost of a healthcare data breach
The financial impact is only part of the story. According to the OAIC, healthcare accounts for around 20% of all data breaches reported nationally. Each incident can cost millions in investigation, recovery, and remediation — but the ripple effects go further.
1. Financial penalties and legal exposure
Under Australia’s Privacy Act, organisations that fail to take “reasonable steps” to protect personal information face penalties of up to A$50 million for serious or repeated breaches. Hospitals, health insurers, and service providers may also face class actions or compensation claims from affected individuals.
2. Operational disruption
When systems go offline, patient care suffers. Ransomware can block access to critical data such as medication charts, imaging, and lab results. The resulting delays or manual workarounds are not just inconvenient — they can compromise clinical safety.
3. Reputational damage
Trust is the foundation of healthcare. Once lost, it’s hard to rebuild. Public breaches erode confidence among patients and partners, while staff morale takes a hit. Even years later, organisations continue to be associated with the incident.
4. Regulatory scrutiny
Healthcare providers are subject to increasing oversight from the OAIC and, in some cases, state privacy commissioners. Following a breach, regulators may require formal undertakings, audits, or enforceable commitments, consuming time and resources that could have been spent on improving services.
Preventing a data breach requires a shift from reactive IT security to proactive information governance. Strong governance is about knowing what data you hold, managing it responsibly, and protecting it throughout its lifecycle — from creation to secure disposal.
Here’s how healthcare organisations can take meaningful steps:
1. Know your data
Conduct a comprehensive data inventory. Identify where patient and staff information is stored — from clinical systems to email inboxes, file shares, and third-party applications. Without visibility, there’s no control.
2. Classify sensitive information
Not all data carries the same risk. Use automated classification tools to identify personally identifiable information, health data, and confidential corporate information. This allows targeted protection measures and prioritised risk management.
3. Apply policy-driven governance
Develop and enforce retention and disposal policies that align with the Privacy Act and My Health Records Act. Data minimisation, keeping only what you need, for only as long as you need it reduces both cost and exposure.
4. Strengthen breach readiness
Have a formal incident response plan that includes data breach reporting procedures. Under the NDB scheme, healthcare providers must notify both the OAIC and affected individuals of any breach likely to cause serious harm. Practise breach scenarios and ensure all staff know their role in responding quickly and accurately.
5. Use technology that supports compliance
Modern Information Governance software such as RecordPoint enable healthcare organisations to automate data discovery, classification, retention, and disposal.
RecordPoint connects to existing systems like Microsoft 365, SharePoint, and clinical repositories — to manage data in place without disrupting workflows.
By using AI to detect sensitive information and apply retention rules automatically, it helps organisations reduce risk, prove compliance, and respond rapidly if a breach occurs.
A culture of accountability
Technology alone can’t prevent every incident. A privacy-aware culture is just as important. Regular training, leadership buy-in, and clear accountability all help ensure that protecting information becomes second nature, not an afterthought.
When everyone understands that information is a patient asset, governance becomes a shared responsibility across clinical, administrative, and IT teams.
It’s important to remember that a data breach isn’t just an IT problem — it’s a patient safety issue, a compliance issue, and ultimately, a trust issue.
By investing in Information Governance now, healthcare organisations can move beyond firefighting and create an environment where data is accurate, secure, and ethically managed.
Because in the end, protecting patient data is protecting the patients themselves.
Grace Information, in partnership with RecordPoint, helps healthcare providers across Australia implement end-to-end Information Governance solutions, enabling compliance, reducing risk, and building the foundations of digital trust.
To learn more about how Grace Information and RecordPoint can help your organisation strengthen its data governance and breach resilience get in touch.
