More than in any other sector, healthcare organisations are responsible for storing highly sensitive personal information and for this reason safeguarding patient data and systems is paramount. These insights explore cybersecurity considerations for the healthcare sector and share a perspective on the industry’s unique challenges and the way ahead for business leaders.

 

Amid new and evolving cyber threats, the stakes have never been higher for healthcare organisations. Globally, the sector has seen attacks intended to compromise patient data as well as weaken healthcare systems. Beyond sensitive information, cyber attackers are increasingly targeting capabilities linked to care delivery and patient experience. In instances of ransomware attacks, healthcare organisations cannot afford to lose time due to locked systems when lives are at stake.

The fact that the healthcare sector has historically been less prepared for cyber risks than other industries adds to the complexity. Many organisations have viewed technology as a back-office function, relying on legacy mainframe systems and outdated technology stacks.

Electronic health record systems (EHR) have become essential clinical technology that helps to improve patient access to health and services, enhance care quality and safety, streamline clinical workflows and support team-based collaboration. While these interoperable systems offer many benefits to healthcare systems, the very nature of the information they contain put them at risk for cyber-attacks.

Healthcare systems continue to encounter a wide range of cyber threats, such as ransomware and distributed-denial-of-service attacks. Opportunities for threat actors to execute these types of attacks often arise from various cybersecurity challenges faced by healthcare organisations, such as a lack of multifactor authentication, reliance on outdated systems, endpoint complexity, and insufficient security awareness and training, among many others.

Organisations will also be subject to increasing regulatory mandates around data security, privacy, and interoperability. Health systems, payors, and commissioners will have to work together to deliver on these imperatives. As leaders manage their transformation journeys, these will be critical areas. With a focus on resilience, regulatory compliance, and a roadmap for AI integration, cybersecurity leaders can play a pivotal role in transforming the integrity of the sector’s IT infrastructure.

About these insights

The insights that follow originate from the KPMG Cybersecurity considerations 2024 report and have been adapted to provide a healthcare sector perspective for Chief Technology and Information Officers and their teams to consider in supporting their organisations’ objectives and to mitigating the impact of specific cyber incidents and reducing overall cyber risk exposure.

 

Consideration 1: Align cybersecurity with organisational resilience

 

Healthcare organisations are seeing the urgency of robust cyber resilience, a capability that demands rapid, measured responses and proactive planning. Resilience in the healthcare sector is not just about maintaining operational capabilities but also preserving the confidence and trust of patients and stakeholders.

Organisations need a repeatable approach to tackling cyber threats’ dynamic nature, considering the sector's unique vulnerabilities and regulatory compliance requirements. KPMG research that compared healthcare technology function decision making with other industries, found that healthcare executives were 10 percent less likely than the cross-sector average to treat cybersecurity as a box-ticking exercise in staff training. Instead, they incorporate cybersecurity extensively across their organisation to ensure trust.1

Embedding resilience with manual processes or backup technology systems requires resources that large public organisations can afford, but smaller providers may struggle with. Even though data held by smaller organisations is just as valuable and vulnerable. In a recent research report the Partnership for Healthcare System Sustainability and Resilience flagged a need for “clear regulations on the interoperability of digital systems across healthcare providers and government systems”.4 It would also be beneficial for the healthcare sector globally to have a roadmap to elevate its overall security posture.


Consideration 2: Unlock the potential of AI — carefully

 

Healthcare leaders are looking at AI to address workforce shortages and find operational efficiencies in patient care and the broader ecosystem. With generative AI, alongside robotics and machine learning, making significant inroads, the sector is tasked with navigating the complex interplay of security, privacy, and ethical considerations inherent in these technologies. 

The journey toward integrating AI into healthcare is fraught with challenges and peppered with unparalleled opportunities for innovation and enhanced service delivery. The overarching goal remains clear: leverage AI in a manner that upholds the highest standards of care, security and ethical responsibility.

 

While healthcare organisations remain keen on using AI to streamline operations and enhance efficiency, there are unique challenges in connection with using the technology in a manner that is compliant with healthcare data regulations such as the Health Insurance Portability and Accountability Act (HIPAA) in the US, the General Data Protection Regulation (GDPR) in Europe and the UK, the Privacy Act in Australia, and the Personal Information Protection and Electronic Documents Act in Canada. Custom AI systems that facilitate improved efficiency and effectiveness while adhering to regulatory mandates each organisation's unique context can be the way forward.


Consideration 3: Modernise supply chain security

 

For healthcare leaders, the need to modernise supply chain security has never been more acute as traditional third-party and supply chain security models grapple with today’s complex, interdependent ecosystems. The notion that third parties operate merely on a transactional basis is a relic of the past. Today, APIs, advanced processes, and software-as-a-service dependencies demand a more strategic approach to supplier partnerships.

There is a greater need for continuous monitoring and managing the evolving risk profiles of suppliers. In doing so, the challenges of visibility, scalability and the evolving risk profile of third-party partners loom large. Amid these challenges, there is also an opportunity to reimagine supply chain security as a key business enabler with a comprehensive risk-based mindset and strategic application of intelligent automation.

 

While modernising supply chain security remains critical, the days of lengthy and manual risk assessments are fading into the past as they are neither financially nor operationally scalable. New technologies and tools are continually improving the ability to diagnose cyber risk and triage vendor focus areas, reducing the manual effort required and allowing for more bandwidth on resiliency efforts.


Key takeaways for healthcare leaders

 
  • Healthcare involves life and death decision making. Healthcare organisations cannot afford to have locked systems when lives are at stake. To improve organisational resiliency, comprehensive incident response plans are needed that outline procedures to identify, contain, eradicate and recover from various cyberattacks.
  • As the industry embraces technology with a focus on improving patient outcomes and experiences, establishing governance frameworks and ethical guidelines for the user and development of AI in healthcare operations, ensuring robust data privacy and security measures.
  • With complex, interdependent ecosystems, healthcare organisations need to be able to assess the security posture of third parties and implement continuous monitoring plans to promptly detect and address potential supply chain vulnerabilities.

 


How KPMG can help

Increasingly healthcare organisations are turning to technology to address the many challenges they face. Technology makes many things possible, but possible doesn’t always mean safe. As cyber threats grow in volume and sophistication, technology becomes essential for meeting the needs of patients, and managing the expectations of providers, staff and health system partners.

KPMG firm professionals work with healthcare organisations around the world to help address market challenges, provide in-depth industry perspectives, assess cybersecurity programs, develop advanced digital solutions, advise on the implementation and monitoring of ongoing risks, and help design appropriate responses to cyber incidents.

Get in touch to learn more about how KPMG’s cyber security services can help meet your organisation’s current and future needs.



KPMG Global Tech report 

2 Partnership for Healthcare System Sustainability and Resilience. (2023). Key findings from country reports: Building sustainable and resilient health systems.

KPMG Global Tech Report

4 Ibid.