--- title: "Shadow IT: Healthcare Industry Scourge or Opportunity for Growth?" description: In May this year, two New York City hospitals — New York-Presbyterian Hospital and Columbia University Medical Center — were slammed with a whopping $4.8 million fine from the U.S. Department of Health and Human Services, the biggest HIPAA fine in U.S. history. The hospitals were fined for failing to protect patient information under HIPAA privacy laws due to an incident in 2010 when the electronic health data of 6,800 patients were made public on the Internet. According to the HHS investigation, the incident unfolded because a Columbia faculty member attempted to deactivate a personally owned service that was connected to the hospital's network where the patient data resided. canonical_url: https://www.acronis.com/en/blog/posts/shadow-it-healthcare-industry-scourge-or-opportunity-growth/ locale: en last_updated: 2026-10-27 --- [Acronis Blog](https://www.acronis.com/en/blog/) # Shadow IT: Healthcare Industry Scourge or Opportunity for Growth? In May this year, two New York City hospitals — New York-Presbyterian Hospital and Columbia University Medical Center — were slammed with a whopping $4.8 million fine from the U.S. Department of Health and Human Services, the biggest HIPAA fine in U.S. history. The hospitals were fined for failing to protect patient information under HIPAA privacy laws due to an incident in 2010 when the electronic health data of 6,800 patients were made public on the Internet. According to the HHS investigation, the incident unfolded because a Columbia faculty member attempted to deactivate a personally owned service that was connected to the hospital's network where the patient data resided. [Try Now](https://www.acronis.com/en/products/cloud/trial/) [![Image 2: Acronis Editorial Team](https://staticfiles.acronis.com/images/content/d85707ae91461544212d39836dc32b42.png)](https://www.acronis.com/en/blog/authors/acronis/ "Acronis Editorial Team") [Acronis Editorial Team](https://www.acronis.com/en/blog/authors/acronis/) 2 min read Last updated 01 September 2016 In May this year, two New York City hospitals — New York-Presbyterian Hospital and Columbia University Medical Center — were slammed with a whopping $4.8 million fine from the U.S. Department of Health and Human Services, the biggest HIPAA fine in U.S. history. The hospitals were fined for failing to protect patient information under HIPAA privacy laws due to an incident in 2010 when the electronic health data of 6,800 patients were made public on the Internet. According to the HHS investigation, the incident unfolded because a Columbia faculty member attempted to deactivate a personally owned service that was connected to the hospital's network where the patient data resided. The moral of the story? As employee-owned technology permeates the healthcare industry, organizations need to get serious about secure data storage practices. The problem facing many healthcare IT departments is figuring out how to regulate data security in a world where many employees adopt their own mobile and cloud applications if company-provided apps are too difficult to use. What's commonly being referred to as "the consumerization of IT" or (more insidiously) "shadow IT" can mean major fines in the case of a HIPAA audit — or worse — a data breach. What's the solution? "IT needs to first understand that shadow IT operators are trying to do their jobs as efficiently and effectively as possible," technology journalist Ryan Faas says. "Ideally that leads to engaging the operators and working to find effective and secure solutions that meet their needs." _Read more at CITEWorld_ ## Related articles: **Shadow IT: How IT Depts. Can Use It to Their Advantage** While shadow IT may seem like a pro's worst nightmare when it comes to data storage and security issues within an organization, it can also be an opportunity. Andrew Conry Murray, director of content and community at independent technology conference Interop, explains how shadow IT can be used to create a bridge between the IT department and the rest of the company. _Read more at InformationWeek_ **Hospitals See a Major Uptick in Digital Data in 2014** This year the annual "Most Wired" survey, an industry-standard IT benchmark study conducted by Hospitals & Health Networks, found that hospitals are diving "deeper into data analytics and population health management." According to the survey, 69 percent are using tools to analyze digital clinical and administrative data to identify areas for care improvement and cost reduction. _Read more at HealthcareITNews_ **You've Either Lost Data or You're About To** Why get started with implementing a disaster recovery plan when your small business has been just fine so far? A combination of naiveté and unwillingness to spend time and money still keeps many small businesses from migrating to the cloud. However, new technologies are available that can significantly lower the costs associated with cloud migration and make the process easier. _Read more at CloudTweaks_ [Cybersecurity](https://www.acronis.com/en/blog/tags/cybersecurity/) [Cyber protection](https://www.acronis.com/en/blog/tags/cyber-protection/) ## Written by ![Image 3: Acronis Editorial Team](https://staticfiles.acronis.com/images/content/d85707ae91461544212d39836dc32b42.png) Acronis Editorial Team Acronis is a global cyber protection company that provides natively integrated cybersecurity, data protection, and endpoint management for managed service providers (MSPs), small and medium businesses (SMBs), and enterprise IT departments. [Previous post](https://www.acronis.com/en/blog/posts/data-protection-truly-about-fast-reliable-recovery-8-noble-truths/) [Data Protection Is Truly About Fast, Reliable Recovery: 8 Noble Truths](https://www.acronis.com/en/blog/posts/data-protection-truly-about-fast-reliable-recovery-8-noble-truths/) [Next post](https://www.acronis.com/en/blog/posts/behind-scenes-space-protecting-extraordinary-amounts-data/) [Behind the Scenes in Space: Protecting Extraordinary Amounts of Data](https://www.acronis.com/en/blog/posts/behind-scenes-space-protecting-extraordinary-amounts-data/) About Acronis Acronis is a leader in AI-native cyber protection, unifying data protection, cybersecurity, IT operations and hybrid infrastructure to deliver business continuity, security and compliance with less cost and complexity. More than 21,000 service providers trust Acronis to protect over 750,000 businesses in 150 countries. Acronis is headquartered in Schaffhausen, Switzerland. [Add as a preferred source on Google](https://google.com/preferences/source?q=acronis.com) ## Related stories Want to learn more? Read the latest stories featuring this solution on our blog. [Acronis Blog](https://www.acronis.com/en/blog/) ![Image 4: stc Bahrain and Acronis partner to bring advanced endpoint security to businesses in Bahrain](https://staticfiles.acronis.com/images/blog-card/9600f3eea83b8f4e168ea6c1409c8c26.png) [stc Bahrain and Acronis partner to bring advanced endpoint security to businesses in Bahrain](https://www.acronis.com/en/blog/posts/stc-bahrain-and-acronis-partner-to-bring-endpoint-security-to-businesses/) We are proud to announce a strategic partnership with stc Bahrain, expanding access to advanced cybersecurity services for businesses across Bahrain. **October 26, 2026**3 min read ![Image 5: Introducing New Acronis CEO: Prakash Panjwani](https://staticfiles.acronis.com/images/blog-card/30cb571f6f1aaa131733e5727a4a250c.png) [Introducing New Acronis CEO: Prakash Panjwani](https://www.acronis.com/en/blog/posts/introducing-new-acronis-ceo-prakash-panjwani/) We are pleased to announce the appointment of our new Chief Executive Officer, Prakash Panjwani. A veteran cybersecurity CEO, Panjwani previously served as CEO of WatchGuard Technologies and SafeNet. **October 15, 2026**2 min read ![Image 6: Acronis expands MDR toward broader workspace protection](https://staticfiles.acronis.com/images/blog-card/18e90e89f5ec4ef0901f19008d4ccbf2.png) [Acronis expands MDR toward broader workspace protection](https://www.acronis.com/en/blog/posts/acronis-expands-mdr-toward-broader-workspace-protection/) Acronis is expanding the MDR service with capabilities that make this expertise easier to deliver and help partners address more risks. The developments build on a broader commitment to managed security: helping service providers protect the connected workspace while giving customers access to the expertise needed to investigate threats, respond effectively and maintain business continuity. **October 13, 2026**6 min read