The growing cybersecurity threat in healthcare: Risks, regulations, and solutions

The healthcare sector has seen a significant rise in cyberattacks, affecting both data security and patient care. According to Proofpoint’s 2024 report, 92% of healthcare organizations faced a cyber attack last year, up from 88% in 2023. Of these, 69% reported disruptions to patient care, highlighting the growing risks.

These breaches go beyond data loss, impacting medical services and patient outcomes. As cyber threats evolve, healthcare organizations must stay vigilant and follow guides on complying with healthcare regulations to protect sensitive data and ensure uninterrupted care.

Cyberattacks threatening healthcare

Several types of cyberattacks have emerged as the leading threats to healthcare organizations. These include ransomware, business email compromise (BEC), cloud compromises, and supply chain attacks.

According to Proofpoint’s study, ransomware is a particularly destructive force, with 59% of organizations reporting such attacks in the past two years. These attacks not only cause data breaches but also lead to significant disruptions, including delayed medical procedures, longer hospital stays, and patient transfers to other facilities.

Among the most damaging, BEC attacks are the top culprits when it comes to delaying procedures and tests, with 69% of organizations reporting such delays as a result. Supply chain attacks also present a significant challenge, as 68% of organizations reported being affected by them, with 82% of these incidents disrupting patient care.

Such breaches further emphasize the critical importance of securing every layer of a healthcare organization’s operations, from cloud infrastructure to third-party vendor relationships, particularly in light of health tech & HIPAA compliance.

Cybersecurity and patient safety: A direct link

The impact of cyberattacks in healthcare extends far beyond financial losses and regulatory challenges, directly affecting patient safety. Proofpoint’s findings reveal that 56% of organizations experienced poor patient outcomes due to delayed procedures, 53% saw complications during treatments, and 28% reported increased mortality rates.

These statistics underscore the growing link between cyberattacks and negative healthcare outcomes. When organizations fail to respond quickly, the consequences are severe. Adhering to health tech & emerging global standards is essential for reducing these risks and enhancing patient care.

Role of data loss and employee negligence

Data loss and exfiltration incidents pose a significant concern for healthcare organizations, as more than 90% of those surveyed by Proofpoint reported experiencing at least two such incidents over the past two years. These breaches, often caused by employee negligence, have a direct impact on patient care. In fact, 51% of organizations said these incidents worsened patient outcomes, with 50% seeing higher mortality rates and 37% facing delays in medical procedures.

Employee negligence is a key factor behind these breaches, often resulting from failure to follow cybersecurity policies, accidental data loss, or sending sensitive information to the wrong recipients. As healthcare continues to digitize, robust employee training and strong data governance policies are critical, especially to ensure compliance with health tech & HIPAA compliance standards.

Compliance affects contracts and funding

Breaches in healthcare can lead to significant operational and financial consequences, with non-compliance resulting in lost contracts and funding opportunities.

For instance, in February 2025, Health Net Federal Services (HNFS), the military health benefits administrator, resolved allegations that it had inaccurately certified its compliance with cybersecurity standards in relation to a contract with the U.S. Department of Defense. The company was required to pay a $11.2 million settlement and, in addition, lost its TRICARE West Region contract, which had provided healthcare services to millions of beneficiaries.

These incidents highlight the critical need for compliance with healthcare regulations. Failing to meet these standards can lead to substantial fines, lost contracts, and a damaged reputation. Additionally, businesses often require partners to meet strict compliance frameworks like SOC 2, and organizations that fall short risk losing key partnerships and missing growth opportunities.

The financial burden of cybersecurity incidents

Cybersecurity incidents not only jeopardize patient care but also place a significant financial burden on healthcare organizations. Allianz’s 2024 study revealed a sharp increase in the frequency and severity of large cyber claims, particularly those related to data breaches.

Over the past two years, healthcare organizations have faced escalating costs due to cyberattacks, with many experiencing multiple ransomware incidents. While fewer organizations paid the ransom in 2024 compared to the previous year (36% vs. 40%), the average ransom amount surged to over $1 million, a 10% increase from 2023.

Beyond ransomware, healthcare organizations are also dealing with rising costs due to data loss and privacy-related lawsuits. The healthcare industry is seeing more class action lawsuits related to data breaches, with over 1,300 filed in 2023 alone, more than double the previous year. As such, cyber insurance has become increasingly essential in helping organizations mitigate these financial risks.

Healthcare cybersecurity challenges and solutions

Despite the growing threats, there is a silver lining. Healthcare organizations are beginning to invest more in cybersecurity infrastructure to protect against these evolving risks. According to Proofpoint, IT budgets have increased on average, and fewer IT practitioners cite budget constraints as a major challenge in maintaining an effective cybersecurity posture.

Addressing leadership gaps and employee training: A major challenge in healthcare cybersecurity is the lack of strong leadership. In 2024, 49% of organizations reported leadership gaps, up from 14% in 2023, emphasizing the need for clear accountability and a strategic cybersecurity approach.

Additionally, negligent employees remain a significant risk. While 71% of organizations are focusing on awareness, only 59% offer regular training, making comprehensive, role-specific training essential for reducing cybersecurity threats.

Artificial intelligence in healthcare security: AI is becoming a key tool in healthcare cybersecurity, with 54% of organizations using it to enhance defenses and improve patient care. It aids in threat detection and response, with 57% of organizations reporting improved cybersecurity outcomes.

AI helps identify human behavior patterns to detect potential threats early. However, as AI adoption grows, healthcare organizations must address privacy concerns and ensure compliance with evolving health tech standards and global regulations.

The future of healthcare cybersecurity

As cyber threats continue to evolve, healthcare organizations must implement robust cybersecurity strategies that integrate technology, strong leadership, and employee awareness to safeguard patient care. Investing in cybersecurity infrastructure, implementing AI-driven threat detection, and promoting security awareness are key to safeguarding patient data.

Additionally, securing cyber insurance and complying with data privacy regulations are vital for managing financial risks. Cybersecurity is critical for patient safety. Healthcare organizations must prioritize securing their systems to prevent disruptions and ensure high-quality care in a safe environment.