Blog
November 22, 2024

A Guide to Data Classification for Healthcare Organisations

Ensure the security and compliance of your healthcare data with effective classification. Learn how to identify, classify, and protect sensitive information like PH, discover best practices for data classification in healthcare and why it's crucial for regulatory compliance and risk mitigation.

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Key points 

  • Data classification is a critical component of data security strategies in healthcare.
  • Healthcare organisations must classify different types of data to mitigate risks and ensure regulatory compliance.
  • Effective data classification helps protect sensitive information like PHI (Protected Health Information).
  • Metomic provides tools and features to streamline data classification processes, ensuring compliance and security.

With approximately 30% of the world's data volume generated by the healthcare industry, healthcare organisations need to classify and manage data effectively.

Data classification is crucial for protecting sensitive healthcare information. It’s not just about keeping things secure—it’s also about staying on the right side of federal regulations like HIPAA. 

By classifying data properly, organisations can better protect patient records and ensure you're meeting compliance requirements.

In this guide, we’ll take a look at why data classification is so important for healthcare organisations, the challenges you might face, and how to get it right. 

We’ll also talk about the benefits of data classification, from avoiding data breaches to meeting those tough regulatory requirements. 

What is data classification, and how does it relate to healthcare organisations?

Data classification refers to the process of organising data based on its sensitivity and importance. The goal is to make certain that sensitive data receives enhanced protection, while less critical data is given the appropriate amount of care. 

In healthcare, data classification is essential for safeguarding Protected Health Information (PHI) and complying with regulations like HIPAA. Without a clear classification system, healthcare organisations risk mishandling sensitive information, which can lead to data breaches or non-compliance issues.

When healthcare organisations classify their data, they can implement stronger controls to prevent data misuse. For example, 75% of organisations that don't classify their data upon creation take days to detect misuse, while 27% of those that do classify data on creation spot misuse within minutes.

By categorising data, organisations can respond faster and minimise the impact of potential breaches.

What type of healthcare data requires classifying?

Not all data in healthcare is the same—some is far more sensitive and needs extra protection.

Here’s a look at the key types of data that healthcare organisations need to classify:

  • Protected Health Information (PHI): This includes anything that can identify a patient, like medical records, test results, diagnoses, and prescriptions. PHI is highly regulated under laws like HIPAA, so mishandling it can result in serious penalties.
  • Financial data: This covers payment details, billing information, and insurance claims. It’s a prime target for fraud, so it requires careful classification.
  • Personally Identifiable Information (PII): Data like names, addresses, dates of birth, and Social Security numbers, which can be used to identify people. PII is a key target for cybercriminals, making it critical to classify and protect.

With 25% of publicly shared files owned by healthcare organisations containing Personally Identifiable Information (PII), it's clear why proper classification is a must.

Why is it important for healthcare organisations to classify data?

Classifying data isn’t just about being organised—without a clear classification system in place, healthcare organisations face serious consequences.

Here’s why data classification is so important:

  • Minimising risks: Unclassified data is far more vulnerable to misuse, whether it's accidental or intentional. Without proper categories in place, healthcare organisations can’t tell which data needs extra protection. This opens the door to potential breaches.
  • Protecting patient information and maintaining compliance: Properly classifying data ensures sensitive information—like PHI and PII—remains secure. It also helps healthcare organisations meet regulatory requirements, such as HIPAA, which can be complicated and subject to frequent audits. A solid classification system simplifies the process of staying compliant and avoiding costly fines.
  • Avoiding financial and reputational damage: Data breaches can have serious financial and reputational consequences. According to IBM, the average cost of a breach in healthcare is now $9.77 million—significantly higher than the global average of $4.88 million. Beyond the costs, healthcare organisations risk losing patient trust and damaging their reputation, which can take years to rebuild.

Classifying data properly helps mitigate these risks by keeping patient information protected, ensuring compliance, and reducing the potential for costly breaches.

What compliance regulations must they adhere to?

Healthcare organisations have to adhere to various regulations designed to protect sensitive data, ensure patient privacy, and maintain data security. 

These regulations not only impact how organisations handle and classify data, but also shape their data management policies and procedures. 

Here’s an overview of some of the key regulations that healthcare organisations must comply with:

1. HIPAA (Health Insurance Portability and Accountability Act)‍

HIPAA is one of the most well-known regulations, designed to protect patient information in the US, ensuring it remains confidential and secure. Organisations must implement safeguards to protect data, conduct regular training, and have contingency plans in place. Non-compliance can lead to penalties ranging from $141 to $2,134,831 per violation, with annual caps of up to $2,067,813.

Shockingly, 89% of audited entities fail to comply with the Right of Access under HIPAA, and 67% fail to meet requirements for breach notifications. Healthcare organisations need to stay on top of these regulations to avoid costly penalties and reputational damage, and comprehensive data classification is critical for meeting these compliance demands as well as protecting sensitive patient data.

2. HITECH Act (Health Information Technology for Economic and Clinical Health Act)

The HITECH Act promotes the use of Electronic Health Records (EHRs) to improve healthcare quality and safety. Compliance involves regular audits, encryption of data, and ensuring systems are interoperable. Failure to comply can result in financial penalties and loss of incentives.

3. 21st Century Cures Act‍

This act accelerates medical product development and ensures innovation reaches patients faster. Healthcare organisations need to meet data sharing, privacy, and security requirements to comply. Non-compliance can result in delays, legal actions, and damage to reputation.

4. GDPR (General Data Protection Regulation)

For healthcare organisations handling EU citizen data, GDPR sets strict guidelines on data protection and privacy. Organisations must conduct Data Protection Impact Assessments (DPIAs) and appoint a Data Protection Officer (DPO) where needed. Non-compliance can lead to fines averaging €2,142,712 ($2.34 million).

5. CCPA (California Consumer Privacy Act)

The CCPA gives California residents rights regarding their personal information, including the right to opt-out of data sales and access, delete, or transfer their data. Non-compliance can result in significant fines, as seen in June 2024, when a gaming company was fined $500,000 for violating children's privacy provisions.‍

6. HITRUST CSF (Health Information Trust Alliance Common Security Framework)

HITRUST CSF provides a comprehensive, flexible approach to regulatory compliance. Organisations must undergo rigorous assessments and achieve certification to comply. Failure to comply can lead to vulnerabilities in security and loss of trust.

7. Information Blocking Rule

This rule prohibits practices that block access to or sharing of Electronic Health Information (EHI). Organisations must ensure transparency and patient-centric data sharing. Non-compliance can result in investigations and penalties.

8. Interoperability and Patient Access Final Rule

The aim of this rule is to give patients better access to their health information and promote interoperability. Organisations must provide standardised APIs to share data and ensure privacy and security. Non-compliance can damage patient trust and hinder efficient care.

Read More: 8 Essential Healthcare Regulations Organisations Must Comply With

6 best practices for healthcare data classification 

When it comes to classifying and protecting healthcare data, it’s important to follow some tried-and-true practices that not only meet regulatory requirements but also ensure your organisation’s data stays safe.

Here’s a look at some key steps healthcare organisations can take to get it right:

1. Create a clear data classification policy

Start by developing a simple, easy-to-understand policy for classifying your data. Whether it's personal information, patient records, or financial details, making sure each type gets the right level of protection is a must.

2. Use the right tools for the job

There are plenty of tools out there that can help automate data classification. DLP (Data Loss Prevention) software and encryption technologies, for example, can help flag and secure sensitive information automatically, reducing the risk of human error.

3. Train your staff regularly

Data classification isn’t just about systems; it’s also about your people. Regular training ensures everyone knows the rules and the risks. The HIPAA Journal found that more than half of healthcare workers failed a HIPAA assessment, so keeping your team up to speed on data protection is crucial to avoiding costly mistakes.

4. Audit and update regularly

It’s not enough to set things up once. As data grows and regulations change, it’s important to keep checking and updating your processes. Regular risk audits will help keep you on track and ensure you're always compliant.

5. Limit access to sensitive data

Apply the principle of least privilege—only those who need access to sensitive data should have it. This keeps healthcare information secure and reduces the chance of accidental or malicious leaks.

6. Monitor and act on data access

Always keep an eye on who’s accessing sensitive information. If something doesn’t look right, act fast to stop a potential breach before it escalates.

How can Metomic help?

Metomic offers powerful tools to simplify data classification for healthcare organisations, making it easier to manage and protect sensitive data while staying compliant with regulations.

Here's how Metomic can support your data classification efforts:

  • Data discovery and data classification: Metomic uses AI to automatically identify and classify sensitive data across your cloud and SaaS platforms. This reduces the manual effort required,ensuring you can quickly identify where your most critical data resides.
  • Customisable classification levels: Metomic allows you to set up tailored classification levels for different types of data, such as Public, Internal, Confidential, or Highly Confidential. This ensures appropriate handling of sensitive patient information.
  • Compliance management: Metomic helps you stay on top of healthcare-specific regulations like HIPAA by providing visibility into sensitive data and automating access controls. This makes it easier to meet compliance requirements and reduce the risk of violations.
  • Human firewall: Through its automated notifications, Metomic empowers your workforce as a human firewall, alerting employees to data policy violations and helping foster a strong culture of security awareness across your organisation.

Metomic provides the tools needed to streamline your data classification process, safeguard patient information, and maintain compliance with ease.

Getting started with Metomic

Starting with Metomic is simple, and it’s an effective way to boost your organisation’s data classification efforts. Here’s how you can get going:

  • Free data classification assessment: Begin with a free risk assessment to uncover any gaps in how your organisation classifies and protects sensitive data. Metomic will identify areas for improvement and help guide your next steps.
  • Book a tailored demo: Want to see how Metomic works in action? Schedule a personalised demo to explore features like automated data discovery, compliance tracking, and real-time alerts that support your data classification strategy.
  • Get in touch: Have specific questions or want to discuss your data classification needs? Get in touch with our security experts. Our team is ready to help you understand how Metomic can streamline your data management process and boost security across your organisation.
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Ben van Enckevort

CTO and Co-Founder

Ben van Enckevort is the co-founder and CTO of Metomic

Key points 

  • Data classification is a critical component of data security strategies in healthcare.
  • Healthcare organisations must classify different types of data to mitigate risks and ensure regulatory compliance.
  • Effective data classification helps protect sensitive information like PHI (Protected Health Information).
  • Metomic provides tools and features to streamline data classification processes, ensuring compliance and security.

With approximately 30% of the world's data volume generated by the healthcare industry, healthcare organisations need to classify and manage data effectively.

Data classification is crucial for protecting sensitive healthcare information. It’s not just about keeping things secure—it’s also about staying on the right side of federal regulations like HIPAA. 

By classifying data properly, organisations can better protect patient records and ensure you're meeting compliance requirements.

In this guide, we’ll take a look at why data classification is so important for healthcare organisations, the challenges you might face, and how to get it right. 

We’ll also talk about the benefits of data classification, from avoiding data breaches to meeting those tough regulatory requirements. 

What is data classification, and how does it relate to healthcare organisations?

Data classification refers to the process of organising data based on its sensitivity and importance. The goal is to make certain that sensitive data receives enhanced protection, while less critical data is given the appropriate amount of care. 

In healthcare, data classification is essential for safeguarding Protected Health Information (PHI) and complying with regulations like HIPAA. Without a clear classification system, healthcare organisations risk mishandling sensitive information, which can lead to data breaches or non-compliance issues.

When healthcare organisations classify their data, they can implement stronger controls to prevent data misuse. For example, 75% of organisations that don't classify their data upon creation take days to detect misuse, while 27% of those that do classify data on creation spot misuse within minutes.

By categorising data, organisations can respond faster and minimise the impact of potential breaches.

What type of healthcare data requires classifying?

Not all data in healthcare is the same—some is far more sensitive and needs extra protection.

Here’s a look at the key types of data that healthcare organisations need to classify:

  • Protected Health Information (PHI): This includes anything that can identify a patient, like medical records, test results, diagnoses, and prescriptions. PHI is highly regulated under laws like HIPAA, so mishandling it can result in serious penalties.
  • Financial data: This covers payment details, billing information, and insurance claims. It’s a prime target for fraud, so it requires careful classification.
  • Personally Identifiable Information (PII): Data like names, addresses, dates of birth, and Social Security numbers, which can be used to identify people. PII is a key target for cybercriminals, making it critical to classify and protect.

With 25% of publicly shared files owned by healthcare organisations containing Personally Identifiable Information (PII), it's clear why proper classification is a must.

Why is it important for healthcare organisations to classify data?

Classifying data isn’t just about being organised—without a clear classification system in place, healthcare organisations face serious consequences.

Here’s why data classification is so important:

  • Minimising risks: Unclassified data is far more vulnerable to misuse, whether it's accidental or intentional. Without proper categories in place, healthcare organisations can’t tell which data needs extra protection. This opens the door to potential breaches.
  • Protecting patient information and maintaining compliance: Properly classifying data ensures sensitive information—like PHI and PII—remains secure. It also helps healthcare organisations meet regulatory requirements, such as HIPAA, which can be complicated and subject to frequent audits. A solid classification system simplifies the process of staying compliant and avoiding costly fines.
  • Avoiding financial and reputational damage: Data breaches can have serious financial and reputational consequences. According to IBM, the average cost of a breach in healthcare is now $9.77 million—significantly higher than the global average of $4.88 million. Beyond the costs, healthcare organisations risk losing patient trust and damaging their reputation, which can take years to rebuild.

Classifying data properly helps mitigate these risks by keeping patient information protected, ensuring compliance, and reducing the potential for costly breaches.

What compliance regulations must they adhere to?

Healthcare organisations have to adhere to various regulations designed to protect sensitive data, ensure patient privacy, and maintain data security. 

These regulations not only impact how organisations handle and classify data, but also shape their data management policies and procedures. 

Here’s an overview of some of the key regulations that healthcare organisations must comply with:

1. HIPAA (Health Insurance Portability and Accountability Act)‍

HIPAA is one of the most well-known regulations, designed to protect patient information in the US, ensuring it remains confidential and secure. Organisations must implement safeguards to protect data, conduct regular training, and have contingency plans in place. Non-compliance can lead to penalties ranging from $141 to $2,134,831 per violation, with annual caps of up to $2,067,813.

Shockingly, 89% of audited entities fail to comply with the Right of Access under HIPAA, and 67% fail to meet requirements for breach notifications. Healthcare organisations need to stay on top of these regulations to avoid costly penalties and reputational damage, and comprehensive data classification is critical for meeting these compliance demands as well as protecting sensitive patient data.

2. HITECH Act (Health Information Technology for Economic and Clinical Health Act)

The HITECH Act promotes the use of Electronic Health Records (EHRs) to improve healthcare quality and safety. Compliance involves regular audits, encryption of data, and ensuring systems are interoperable. Failure to comply can result in financial penalties and loss of incentives.

3. 21st Century Cures Act‍

This act accelerates medical product development and ensures innovation reaches patients faster. Healthcare organisations need to meet data sharing, privacy, and security requirements to comply. Non-compliance can result in delays, legal actions, and damage to reputation.

4. GDPR (General Data Protection Regulation)

For healthcare organisations handling EU citizen data, GDPR sets strict guidelines on data protection and privacy. Organisations must conduct Data Protection Impact Assessments (DPIAs) and appoint a Data Protection Officer (DPO) where needed. Non-compliance can lead to fines averaging €2,142,712 ($2.34 million).

5. CCPA (California Consumer Privacy Act)

The CCPA gives California residents rights regarding their personal information, including the right to opt-out of data sales and access, delete, or transfer their data. Non-compliance can result in significant fines, as seen in June 2024, when a gaming company was fined $500,000 for violating children's privacy provisions.‍

6. HITRUST CSF (Health Information Trust Alliance Common Security Framework)

HITRUST CSF provides a comprehensive, flexible approach to regulatory compliance. Organisations must undergo rigorous assessments and achieve certification to comply. Failure to comply can lead to vulnerabilities in security and loss of trust.

7. Information Blocking Rule

This rule prohibits practices that block access to or sharing of Electronic Health Information (EHI). Organisations must ensure transparency and patient-centric data sharing. Non-compliance can result in investigations and penalties.

8. Interoperability and Patient Access Final Rule

The aim of this rule is to give patients better access to their health information and promote interoperability. Organisations must provide standardised APIs to share data and ensure privacy and security. Non-compliance can damage patient trust and hinder efficient care.

Read More: 8 Essential Healthcare Regulations Organisations Must Comply With

6 best practices for healthcare data classification 

When it comes to classifying and protecting healthcare data, it’s important to follow some tried-and-true practices that not only meet regulatory requirements but also ensure your organisation’s data stays safe.

Here’s a look at some key steps healthcare organisations can take to get it right:

1. Create a clear data classification policy

Start by developing a simple, easy-to-understand policy for classifying your data. Whether it's personal information, patient records, or financial details, making sure each type gets the right level of protection is a must.

2. Use the right tools for the job

There are plenty of tools out there that can help automate data classification. DLP (Data Loss Prevention) software and encryption technologies, for example, can help flag and secure sensitive information automatically, reducing the risk of human error.

3. Train your staff regularly

Data classification isn’t just about systems; it’s also about your people. Regular training ensures everyone knows the rules and the risks. The HIPAA Journal found that more than half of healthcare workers failed a HIPAA assessment, so keeping your team up to speed on data protection is crucial to avoiding costly mistakes.

4. Audit and update regularly

It’s not enough to set things up once. As data grows and regulations change, it’s important to keep checking and updating your processes. Regular risk audits will help keep you on track and ensure you're always compliant.

5. Limit access to sensitive data

Apply the principle of least privilege—only those who need access to sensitive data should have it. This keeps healthcare information secure and reduces the chance of accidental or malicious leaks.

6. Monitor and act on data access

Always keep an eye on who’s accessing sensitive information. If something doesn’t look right, act fast to stop a potential breach before it escalates.

How can Metomic help?

Metomic offers powerful tools to simplify data classification for healthcare organisations, making it easier to manage and protect sensitive data while staying compliant with regulations.

Here's how Metomic can support your data classification efforts:

  • Data discovery and data classification: Metomic uses AI to automatically identify and classify sensitive data across your cloud and SaaS platforms. This reduces the manual effort required,ensuring you can quickly identify where your most critical data resides.
  • Customisable classification levels: Metomic allows you to set up tailored classification levels for different types of data, such as Public, Internal, Confidential, or Highly Confidential. This ensures appropriate handling of sensitive patient information.
  • Compliance management: Metomic helps you stay on top of healthcare-specific regulations like HIPAA by providing visibility into sensitive data and automating access controls. This makes it easier to meet compliance requirements and reduce the risk of violations.
  • Human firewall: Through its automated notifications, Metomic empowers your workforce as a human firewall, alerting employees to data policy violations and helping foster a strong culture of security awareness across your organisation.

Metomic provides the tools needed to streamline your data classification process, safeguard patient information, and maintain compliance with ease.

Getting started with Metomic

Starting with Metomic is simple, and it’s an effective way to boost your organisation’s data classification efforts. Here’s how you can get going:

  • Free data classification assessment: Begin with a free risk assessment to uncover any gaps in how your organisation classifies and protects sensitive data. Metomic will identify areas for improvement and help guide your next steps.
  • Book a tailored demo: Want to see how Metomic works in action? Schedule a personalised demo to explore features like automated data discovery, compliance tracking, and real-time alerts that support your data classification strategy.
  • Get in touch: Have specific questions or want to discuss your data classification needs? Get in touch with our security experts. Our team is ready to help you understand how Metomic can streamline your data management process and boost security across your organisation.

Key points 

  • Data classification is a critical component of data security strategies in healthcare.
  • Healthcare organisations must classify different types of data to mitigate risks and ensure regulatory compliance.
  • Effective data classification helps protect sensitive information like PHI (Protected Health Information).
  • Metomic provides tools and features to streamline data classification processes, ensuring compliance and security.

With approximately 30% of the world's data volume generated by the healthcare industry, healthcare organisations need to classify and manage data effectively.

Data classification is crucial for protecting sensitive healthcare information. It’s not just about keeping things secure—it’s also about staying on the right side of federal regulations like HIPAA. 

By classifying data properly, organisations can better protect patient records and ensure you're meeting compliance requirements.

In this guide, we’ll take a look at why data classification is so important for healthcare organisations, the challenges you might face, and how to get it right. 

We’ll also talk about the benefits of data classification, from avoiding data breaches to meeting those tough regulatory requirements. 

What is data classification, and how does it relate to healthcare organisations?

Data classification refers to the process of organising data based on its sensitivity and importance. The goal is to make certain that sensitive data receives enhanced protection, while less critical data is given the appropriate amount of care. 

In healthcare, data classification is essential for safeguarding Protected Health Information (PHI) and complying with regulations like HIPAA. Without a clear classification system, healthcare organisations risk mishandling sensitive information, which can lead to data breaches or non-compliance issues.

When healthcare organisations classify their data, they can implement stronger controls to prevent data misuse. For example, 75% of organisations that don't classify their data upon creation take days to detect misuse, while 27% of those that do classify data on creation spot misuse within minutes.

By categorising data, organisations can respond faster and minimise the impact of potential breaches.

What type of healthcare data requires classifying?

Not all data in healthcare is the same—some is far more sensitive and needs extra protection.

Here’s a look at the key types of data that healthcare organisations need to classify:

  • Protected Health Information (PHI): This includes anything that can identify a patient, like medical records, test results, diagnoses, and prescriptions. PHI is highly regulated under laws like HIPAA, so mishandling it can result in serious penalties.
  • Financial data: This covers payment details, billing information, and insurance claims. It’s a prime target for fraud, so it requires careful classification.
  • Personally Identifiable Information (PII): Data like names, addresses, dates of birth, and Social Security numbers, which can be used to identify people. PII is a key target for cybercriminals, making it critical to classify and protect.

With 25% of publicly shared files owned by healthcare organisations containing Personally Identifiable Information (PII), it's clear why proper classification is a must.

Why is it important for healthcare organisations to classify data?

Classifying data isn’t just about being organised—without a clear classification system in place, healthcare organisations face serious consequences.

Here’s why data classification is so important:

  • Minimising risks: Unclassified data is far more vulnerable to misuse, whether it's accidental or intentional. Without proper categories in place, healthcare organisations can’t tell which data needs extra protection. This opens the door to potential breaches.
  • Protecting patient information and maintaining compliance: Properly classifying data ensures sensitive information—like PHI and PII—remains secure. It also helps healthcare organisations meet regulatory requirements, such as HIPAA, which can be complicated and subject to frequent audits. A solid classification system simplifies the process of staying compliant and avoiding costly fines.
  • Avoiding financial and reputational damage: Data breaches can have serious financial and reputational consequences. According to IBM, the average cost of a breach in healthcare is now $9.77 million—significantly higher than the global average of $4.88 million. Beyond the costs, healthcare organisations risk losing patient trust and damaging their reputation, which can take years to rebuild.

Classifying data properly helps mitigate these risks by keeping patient information protected, ensuring compliance, and reducing the potential for costly breaches.

What compliance regulations must they adhere to?

Healthcare organisations have to adhere to various regulations designed to protect sensitive data, ensure patient privacy, and maintain data security. 

These regulations not only impact how organisations handle and classify data, but also shape their data management policies and procedures. 

Here’s an overview of some of the key regulations that healthcare organisations must comply with:

1. HIPAA (Health Insurance Portability and Accountability Act)‍

HIPAA is one of the most well-known regulations, designed to protect patient information in the US, ensuring it remains confidential and secure. Organisations must implement safeguards to protect data, conduct regular training, and have contingency plans in place. Non-compliance can lead to penalties ranging from $141 to $2,134,831 per violation, with annual caps of up to $2,067,813.

Shockingly, 89% of audited entities fail to comply with the Right of Access under HIPAA, and 67% fail to meet requirements for breach notifications. Healthcare organisations need to stay on top of these regulations to avoid costly penalties and reputational damage, and comprehensive data classification is critical for meeting these compliance demands as well as protecting sensitive patient data.

2. HITECH Act (Health Information Technology for Economic and Clinical Health Act)

The HITECH Act promotes the use of Electronic Health Records (EHRs) to improve healthcare quality and safety. Compliance involves regular audits, encryption of data, and ensuring systems are interoperable. Failure to comply can result in financial penalties and loss of incentives.

3. 21st Century Cures Act‍

This act accelerates medical product development and ensures innovation reaches patients faster. Healthcare organisations need to meet data sharing, privacy, and security requirements to comply. Non-compliance can result in delays, legal actions, and damage to reputation.

4. GDPR (General Data Protection Regulation)

For healthcare organisations handling EU citizen data, GDPR sets strict guidelines on data protection and privacy. Organisations must conduct Data Protection Impact Assessments (DPIAs) and appoint a Data Protection Officer (DPO) where needed. Non-compliance can lead to fines averaging €2,142,712 ($2.34 million).

5. CCPA (California Consumer Privacy Act)

The CCPA gives California residents rights regarding their personal information, including the right to opt-out of data sales and access, delete, or transfer their data. Non-compliance can result in significant fines, as seen in June 2024, when a gaming company was fined $500,000 for violating children's privacy provisions.‍

6. HITRUST CSF (Health Information Trust Alliance Common Security Framework)

HITRUST CSF provides a comprehensive, flexible approach to regulatory compliance. Organisations must undergo rigorous assessments and achieve certification to comply. Failure to comply can lead to vulnerabilities in security and loss of trust.

7. Information Blocking Rule

This rule prohibits practices that block access to or sharing of Electronic Health Information (EHI). Organisations must ensure transparency and patient-centric data sharing. Non-compliance can result in investigations and penalties.

8. Interoperability and Patient Access Final Rule

The aim of this rule is to give patients better access to their health information and promote interoperability. Organisations must provide standardised APIs to share data and ensure privacy and security. Non-compliance can damage patient trust and hinder efficient care.

Read More: 8 Essential Healthcare Regulations Organisations Must Comply With

6 best practices for healthcare data classification 

When it comes to classifying and protecting healthcare data, it’s important to follow some tried-and-true practices that not only meet regulatory requirements but also ensure your organisation’s data stays safe.

Here’s a look at some key steps healthcare organisations can take to get it right:

1. Create a clear data classification policy

Start by developing a simple, easy-to-understand policy for classifying your data. Whether it's personal information, patient records, or financial details, making sure each type gets the right level of protection is a must.

2. Use the right tools for the job

There are plenty of tools out there that can help automate data classification. DLP (Data Loss Prevention) software and encryption technologies, for example, can help flag and secure sensitive information automatically, reducing the risk of human error.

3. Train your staff regularly

Data classification isn’t just about systems; it’s also about your people. Regular training ensures everyone knows the rules and the risks. The HIPAA Journal found that more than half of healthcare workers failed a HIPAA assessment, so keeping your team up to speed on data protection is crucial to avoiding costly mistakes.

4. Audit and update regularly

It’s not enough to set things up once. As data grows and regulations change, it’s important to keep checking and updating your processes. Regular risk audits will help keep you on track and ensure you're always compliant.

5. Limit access to sensitive data

Apply the principle of least privilege—only those who need access to sensitive data should have it. This keeps healthcare information secure and reduces the chance of accidental or malicious leaks.

6. Monitor and act on data access

Always keep an eye on who’s accessing sensitive information. If something doesn’t look right, act fast to stop a potential breach before it escalates.

How can Metomic help?

Metomic offers powerful tools to simplify data classification for healthcare organisations, making it easier to manage and protect sensitive data while staying compliant with regulations.

Here's how Metomic can support your data classification efforts:

  • Data discovery and data classification: Metomic uses AI to automatically identify and classify sensitive data across your cloud and SaaS platforms. This reduces the manual effort required,ensuring you can quickly identify where your most critical data resides.
  • Customisable classification levels: Metomic allows you to set up tailored classification levels for different types of data, such as Public, Internal, Confidential, or Highly Confidential. This ensures appropriate handling of sensitive patient information.
  • Compliance management: Metomic helps you stay on top of healthcare-specific regulations like HIPAA by providing visibility into sensitive data and automating access controls. This makes it easier to meet compliance requirements and reduce the risk of violations.
  • Human firewall: Through its automated notifications, Metomic empowers your workforce as a human firewall, alerting employees to data policy violations and helping foster a strong culture of security awareness across your organisation.

Metomic provides the tools needed to streamline your data classification process, safeguard patient information, and maintain compliance with ease.

Getting started with Metomic

Starting with Metomic is simple, and it’s an effective way to boost your organisation’s data classification efforts. Here’s how you can get going:

  • Free data classification assessment: Begin with a free risk assessment to uncover any gaps in how your organisation classifies and protects sensitive data. Metomic will identify areas for improvement and help guide your next steps.
  • Book a tailored demo: Want to see how Metomic works in action? Schedule a personalised demo to explore features like automated data discovery, compliance tracking, and real-time alerts that support your data classification strategy.
  • Get in touch: Have specific questions or want to discuss your data classification needs? Get in touch with our security experts. Our team is ready to help you understand how Metomic can streamline your data management process and boost security across your organisation.

Ben van Enckevort

CTO and Co-Founder

Ben van Enckevort is the co-founder and CTO of Metomic

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