HIPAA Fine Calculator: How Much Could You Owe?

One HIPAA violation can cost your practice $10,000-$50,000. Most clinics have 5-10 violations they don't even know about.

Here's how to calculate your risk—and how to protect yourself.

The Reality of HIPAA Fines

The Office for Civil Rights (OCR) doesn't care if you're a small practice. They've fined solo practitioners $50,000. They've fined small clinics $100,000+.

The problem: Most clinics think "we're too small to get fined." That's not true.

The reality: Small practices are actually more likely to get fined because they lack proper compliance documentation.

HIPAA Fine Tiers

HIPAA fines are organized into four tiers based on severity:

Tier 1: Unknowing Violations

• Range: $100 - $50,000 per violation
• Maximum: $1.5 million per year
• Example: You didn't know a policy was required, but you should have known

Tier 2: Reasonable Cause

• Range: $1,000 - $50,000 per violation
• Maximum: $1.5 million per year
• Example: You knew about the requirement but didn't comply due to oversight

Tier 3: Willful Neglect (Corrected)

• Range: $10,000 - $50,000 per violation
• Maximum: $1.5 million per year
• Example: You knew about the requirement, ignored it, but fixed it within 30 days

Tier 4: Willful Neglect (Not Corrected)

• Range: $50,000+ per violation
• Maximum: $1.5 million per year
• Example: You knew about the requirement, ignored it, and didn't fix it

Real HIPAA Fine Examples

Here are actual fines from OCR cases:

Small Practice Fines

• Solo Practitioner (California): $50,000 - Missing risk assessment
• 3-Person Clinic (Texas): $75,000 - Unencrypted devices
• 5-Person Practice (Florida): $100,000 - Missing BAAs

Common Violation Costs

• Missing Risk Assessment: $10,000 - $50,000
• Unencrypted Devices: $25,000 - $100,000
• Missing BAAs: $5,000 - $25,000 per vendor
• Incomplete Training Records: $10,000 - $50,000
• Poor Evidence Organization: $15,000 - $75,000

Calculate Your Risk

Most small clinics have 5-10 violations. Here's how to estimate your potential fine:

1. Count your violations:

   • Missing policies: 1-3 violations
   • Missing risk assessment: 1 violation
   • Unencrypted devices: 1 violation per device
   • Missing BAAs: 1 violation per vendor
   • Incomplete training: 1 violation per untrained staff member

2. Estimate your tier:

   • Tier 1: You didn't know (rare)
   • Tier 2: You knew but didn't comply (common)
   • Tier 3: You ignored it but fixed it (less common)
   • Tier 4: You ignored it and didn't fix it (rare but severe)

3. Calculate your fine:

   • Tier 2 average: $10,000 per violation
   • 5 violations × $10,000 = $50,000
   • 10 violations × $10,000 = $100,000

How to Protect Yourself

The best way to avoid HIPAA fines is to be compliant before an audit or breach.

Here's what you need:

1. All 9 required policies - Documented and signed
2. Risk assessment - Completed and documented
3. Training records - Complete for all staff
4. BAAs - On file for all vendors
5. Evidence organization - Everything in one place

Download the Risk Assessment

Get our free risk assessment tool to identify your violations before an auditor does.

The Cost of Compliance vs. Fines

HIPAA Hub costs $499/year. That's less than 1% of a single violation fine.

ROI calculation:

• Average fine: $50,000
• HIPAA Hub cost: $499/year
• ROI: 10,000%

The math is simple: It's cheaper to be compliant than to pay fines.

Next Steps

1. Calculate your risk - Use the risk assessment tool
2. Identify violations - See where you're non-compliant
3. Get compliant - Use HIPAA Hub to fix violations
4. Sleep better - Know you're protected

Remember: The best time to fix compliance issues was yesterday. The second best time is now.

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This calculator is based on OCR enforcement data from 2020-2026. For personalized compliance guidance, consider using HIPAA Hub.