More than in any other sector, healthcare organizations 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 organizations. 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 organizations 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 Many organizations have viewed technology as a back-office function, relying on legacy mainframe systems and outdated technology stacks.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cybersecurity challenges faced by healthcare organizations, such as a lack of multifactor authentication, reliance on outdated systems, endpoint complexity, and insufficient security awareness and training, among many others.
Organizations 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 organizations’ objectives and to mitigating the impact of specific cyber incidents and reducing overall cyber risk exposure.
Consideration 1: Align cybersecurity with organizational resilience
Healthcare organizations 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.
Organizations 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 organization to ensure trust.1
Embedding resilience with manual processes or backup technology systems requires resources that large public organizations can afford, but smaller providers may struggle with. Even though data held by smaller organizations 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 organizations 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 organization's unique context can be the way forward.
Consideration 3: Modernize supply chain security
For healthcare leaders, the need to modernize 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 modernizing 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.
Real-world cybersecurity in the healthcare sector
In early 2024, a major MedTech company suffered a cyber breach. The attack caused serious issues for several providers and continued to disrupt key operations for months, highlighting the vulnerability of healthcare organizations and illustrating that even large market leaders were susceptible to advanced cyber threats.
As a result of the attack, providers could not process claims and collect payment from insurers. In addition to financial impacts, the attack delayed pre-authorization, verification of coverage, and prescription-filling processes, which affected patient care. While the company restored certain services, there continues to be an issue with a backlog of claims and financial disruptions for providers.
This incident increased scrutiny of healthcare cybersecurity practices, leading healthcare organizations to strengthen their security infrastructure and prioritize continuous monitoring and threat detection capabilities to identify potential cyber threats faster.
Many companies are working to enhance their cybersecurity measures by reviewing technical access controls, revisiting incident response plans, incorporating comprehensive security awareness training, establishing off-site backup systems and prioritizing regular updates and patches for hardware and software assets in their environment.
Key takeaways for healthcare leaders
- Healthcare involves life and death decision making. Healthcare organizations cannot afford to have locked systems when lives are at stake. To improve organizational 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 organizations 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 organizations 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 organizations 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 organization’s current and future needs.
Author
Anurag Rai
Global lead, Cyber security in healthcare, KPMG International; Principal, Advisory, Cyber Security Services
KPMG in the U.S.