The current approach to managing vendor risks are inadequate
As the healthcare sector continues to adopt new technologies, their reliance on remote and cloud-based services has also exponentially increased. While relying on third-party vendors to provide more efficiency and state-of-the-art care and management, healthcare providers must also put more emphasis on third-party vendor risk management.
Of course, security is a concern for every industry, but healthcare providers also have strict privacy and compliance requirements under the HIPAA/HITECH Act rules. Yet, healthcare providers are still not doing enough to avoid data breaches and cyberattacks. It’s a big threat to the entire industry with very high costs.
Cost of healthcare data breaches has increased
A recently published report by Ponemon Institute and IBM Security shows that the average cost of a data breach in the United States rose to $8.19 million. The U.S. healthcare industry has the highest cost at $15 million. And the average cost of healthcare data breaches is $429 per record, more than twice the cost of any other industry.
Also, ransomware attacks on healthcare institutions have become common because…
