Why Managed Service Providers Are Essential for Protecting Patient Privacy in Healthcare

The healthcare industry has become one of the most targeted and vulnerable sectors when it comes to cyber threats. As patient records go digital and more medical devices become connected, cybersecurity in healthcare has transformed from a technical requirement into a mission-critical business priority. The latest industry data paints a stark picture: healthcare providers face unprecedented challenges in safeguarding patient data, making the role of a Managed Service Provider (MSP) more vital than ever.

Here’s a breakdown of the top cybersecurity concerns in healthcare and why partnering with an MSP can help providers defend against evolving digital threats.

1. Healthcare Is the #1 Target for Data Breaches

In the first half of 2024 alone, 43 million healthcare records were breached in the United States. This reflects a trend that has escalated year over year, placing healthcare at the top of the list for data breach incidents. The average cost of a healthcare breach is a staggering $7.13 million, the highest among all industries.

An MSP can help mitigate this risk through proactive threat detection, regular system patching, and 24/7 network monitoring to detect and neutralize breaches before they escalate.

2. Cloud Services & Medical Devices Increase Risk Exposure

With 95% of healthcare organizations using cloud services, new vulnerabilities are introduced into patient data workflows. Cloud environments, while scalable and efficient, require specialized security measures to remain compliant with HIPAA and other privacy regulations.

Additionally, 95% of healthcare organizations use connected medical devices, which are increasingly exploited as attack vectors. MSPs bring critical value by implementing zero-trust architecture, secure device management, and end-to-end encryption across cloud and IoT ecosystems.

3. Insider Threats Are a Major Cause of Breaches

While external hackers dominate headlines, internal actors pose a significant risk. 58% of healthcare data breaches in 2020 were caused by insider threats, whether intentional or accidental. Employees mishandling data, reusing passwords, or falling for phishing scams are all common scenarios.

MSPs enforce identity and access management (IAM) solutions, conduct cybersecurity training, and implement multi-factor authentication (MFA)—all of which reduce the likelihood of insider-related incidents.

4. Cyberattacks and IoT Security Incidents Are on the Rise

The infographic highlights that 82% of healthcare organizations experienced a cyberattack in the past year, and a similar percentage reported an IoT-related incident in 2020. This underscores the need for comprehensive network segmentation, firewall management, and intrusion prevention systems—core components of any modern MSP’s service stack.

Healthcare IT teams are often stretched thin and lack the time or expertise to manage these rapidly evolving risks. This is where MSPs provide scalable support with specialized healthcare cybersecurity expertise.

5. Compliance and Reporting Are Too Complex to Handle Alone

With 725 breaches involving 500+ records reported to the OCR (Office for Civil Rights) in 2023, regulatory pressure is increasing. Failing to comply with HIPAA, HITECH, and other laws can result in severe financial penalties and loss of patient trust.

MSPs assist healthcare organizations with compliance auditing, data backup and disaster recovery planning, and incident response, ensuring not only that threats are prevented—but that organizations can respond effectively when incidents do occur.

Conclusion: Protecting Patient Privacy Requires a Proactive Partner

As the healthcare sector becomes more digitized, cybersecurity in patient data protection can no longer be left to chance. The statistics make it clear: the stakes are higher, the threats are more complex, and the consequences more severe than ever before.

Partnering with a Managed Service Provider like Seashore IT equips healthcare providers with the expertise, tools, and round-the-clock support necessary to protect patient privacy, ensure compliance, and maintain operational continuity in a high-risk environment.