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Strengthening Security and Compliance for Healthcare Technology Solutions

Strengthening Security and Compliance for Healthcare Technology Solutions, Frazier & Deeter

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As healthcare technology providers develop and manage solutions that handle sensitive healthcare data, maintaining strong cybersecurity measures is critical. In response to rising threats, impacting over 275 million individuals last year, HIPAA has proposed updates to its Security Rule to enhance protections for ePHI. While HIPAA sets the baseline for safeguarding sensitive data, staying ahead in today’s evolving landscape requires a more comprehensive approach.

Frameworks like HITRUST help organizations strengthen security beyond HIPAA’s requirements, while a SOC 2 report provides independent validation that an organization’s internal controls over security, availability, confidentiality, processing integrity and/or privacy are in place and operating effectively. By addressing both frameworks together, healthcare technology providers can streamline compliance, enhance data protection and build greater trust with healthcare partners and stakeholders.

What Is A SOC 2 Report?

Developed by the American Institute of Certified Public Accountants (AICPA), a SOC 2 report evaluates an organization’s controls based on one or more of the five trust service criteria:

  • Security: Protection of data against unauthorized access and threats.
  • Availability: Ensuring systems are operational and accessible as committed.
  • Processing Integrity: Maintaining data accuracy and completeness.
  • Confidentiality: Safeguarding sensitive information from unauthorized disclosure.
  • Privacy: Managing personal data according to established policies and industry standards.

Unlike HIPAA, which is a regulatory requirement, a SOC 2 report is an independent examination that an organization elects to perform to ensure their internal controls are designed and operating effectively. For healthcare tech providers, a SOC 2 examination validates their data, systems and platforms meet data security and compliance standards against their own policies and procedures, giving hospitals, clinics and other clients confidence in their data protection measures.

How a SOC 2 Report Supports Security for Healthcare Tech Providers

For healthcare technology companies offering cloud-based patient management solutions, telemedicine platforms or AI-driven analytics tools, SOC 2 compliance is a key differentiator that assures hospitals and healthcare providers of their security posture.

Strengthening Risk Management: A SOC 2 examination includes controls that establish the performance of risk assessments, third-party management, continuous internal control monitoring, formalized security policies, vulnerability management, access management, change management, incident response and other security-related control areas to help organizations identify and mitigate risks and vulnerabilities.

Enhancing Trust with Clients & Partners: As cybersecurity threats rise, healthcare providers, insurers and business partners demand greater transparency regarding data protection efforts. A SOC 2 report demonstrates an organization’s commitment and prioritization of security best practices, reinforcing trust with stakeholders.

Strengthening Operational Resilience: A SOC 2 report can address an organization’s controls to support the reliability and resilience of an organization’s IT systems. This may support availability commitments made to customers, but also operational integrity, reducing downtime and enhancing business continuity in the event of cyber incidents.

Gaining a Competitive Advantage: By undergoing a SOC 2 examination, organizations set themselves apart by demonstrating a commitment to security standards.

Streamlining Compliance with SOC & HITRUST: By aligning SOC 2 efforts with HITRUST certification, healthcare tech providers can reduce redundant assessments, save time on audits and achieve broader compliance with a single, streamlined approach.

Communicating More to Clients & Partners: Organizations may want to demonstrate their compliance with HIPAA requirements within their SOC 2 report.  A SOC 2+ HIPAA report is a way to 1) align SOC 2 and HIPAA requirements and 2) have SOC 2 and HIPAA specific controls independently tested in a single report.

How Frazier & Deeter Can Help

The healthcare industry faces increasing pressure to enhance data security and comply with evolving regulations. By adopting frameworks like SOC 2 and HITRUST, organizations can streamline compliance, build greater trust with partners and fortify their cybersecurity practices.

Frazier & Deeter can help create a comprehensive security and compliance strategy for your organization. Contact us to get started.

Contributors

Shelby Nelson, Partner

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