The IT security assessment firm's "2011 Breach Report/Protected Health Information" report called the problem a national epidemic, noting that at least one large IT data breach incident has been reported in 46 of the country's 50 states.

Almost 40% of all electronic record breaches occurred on a laptop computer or other portable media. The numbers of records breached due to loss of unencrypted devices by employees increased 525% in 2011. The report stated that the problem is likely to get worse because smartphones and mobile tablets are now in use in 80% of healthcare organizations.

Sixty percent of all breaches were the result of malicious intent, including hacker attacks, "insider IT incidents," and theft.