What is a potential risk associated with improper handling of PHI?

Improper handling of PHI (Protected Health Information) poses significant risks, including loss of consumer trust and legal repercussions. When PHI is not managed in accordance with regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), it can lead to breaches of confidentiality. These breaches can erode patient confidence in healthcare providers and organizations, which is crucial for maintaining a trusting relationship.

Moreover, such mishandling can result in severe legal consequences, such as fines and sanctions imposed by regulatory bodies. Organizations found in violation of PHI handling standards may face litigation, damage to their reputation, and financial penalties. As a result, the importance of protecting PHI properly is paramount to safeguarding both the organization and the individuals whose data is held.

The other options present positive outcomes that would not typically be associated with poor handling of PHI, highlighting the distinction between proper and improper practices in healthcare settings.