As a healthcare provider or financial institution, you may be under pressure to reduce costs by moving services out-of-house or employing overseas contractors. Make sure you give adequate attention to data security and legal issues in your outsourcing arrangements.
Who's at Risk?
Those who outsource any service that handles personal information are at risk of identity theft or lapses in data privacy. Popular services being sent out to external providers include:
- Tax preparation.
- Processing of insurance and medical claims.
- Medical transcription services.
- X-ray examinations.
- Other clerical services involving credit histories, bank records, insurance records, social insurance numbers, and credit card numbers.
Action Plan
- Monitor the flow of data. Even if you are only outsourcing domestically, you can still be at risk due to the growing subcontracting industry. For many services, subcontracting...
