Uncovering Third-Party Risk Blind Spots in Healthcare

Every added connection and digital tool helps make healthcare more efficient. At the same time, it also introduces more risks and areas of opportunity for bad actors. It’s important to recognize that the scope of risk doesn’t stop at the front door of your facility. Real visibility and protection must include a complete understanding of every connected asset. Without awareness of every third-party vendor or connection, the attack surface can continue to stretch until something breaks. And for healthcare organizations, it’s essential to take third-party risk from being a buzzword to being a key strategic focus within a cybersecurity program.

Protecting sensitive patient data is often the first use case that comes to mind when we think of third-party risk management in healthcare. However, as we underscored in our recent blog, we must also consider the patient journey and the need for continuous business operations throughout every step. Any breaches or downtime caused by faults, misconfigurations, or malicious attacks of your own assets or those managed by third-party vendors can jeopardize patient care, impact clinical operations, and ultimately damage an organization’s reputation.

Why It Matters

Jaren Day of KLAS Research identified that third-party risk is a top concern for healthcare providers. The focus on third-party risk management solutions has led to significant investments. He noted, “However, early feedback from the market suggests that these investments might not be as effective as hoped.”

Many high-profile healthcare data breaches have been traced back to third-party vendors. According to a 2024 Third-Party Risk Management Study, 61% of organizations reported experiencing a third-party data breach or cybersecurity incident. This marks a sharp 49% increase in incidents year over year, demonstrating that many organizations still face significant challenges protecting their systems.

Some key concerns for healthcare delivery organizations include:

• Limited Visibility: Many healthcare organizations struggle to maintain a comprehensive view of their networks, leaving blind spots for vulnerabilities.
• Large Vendor Ecosystems: With numerous third-party relationships, some organizations lack robust oversight of vendors throughout the partnership lifecycle.
• Over-Privileged Remote Access: Traditional IT-centric remote access solutions like VPNs tend to offer all-or-nothing access to third parties.
• Business Continuity Risks: Beyond data security, any operational disruptions caused by third-party failings can compromise patient care and safety.

These challenges highlight the importance of prioritizing third-party risk management efforts to safeguard data as well as the critical operations that healthcare providers and patients depend on.

Secure Your Weak Spots First

Cybersecurity is only as strong as the weakest link in the chain, and each third-party vendor represents a potential entry point in an organization’s network. Whether vendors access the system remotely through VPNs or actively manage sensitive systems, a weak vendor could unknowingly extend an open invitation to malicious actors. Here are some specific risks tied to third parties in healthcare:

• Unsecured devices that store or transmit data without encryption
• Improper patch management or outdated software
• Third parties failing to uphold stringent security protocols, exposing the network

Cyber attackers often target third parties due to their comparative lack of resources and weaker security measures.

Benefits of Strong Third-Party Risk Management

An effective cybersecurity program that includes third-party risk management provides several advantages for healthcare organizations:

• Regulatory Compliance: Ensures adherence to privacy and security regulations, such as HIPAA in the U.S. or GDPR (the General Data Protection Regulation) in Europe.
• Enhanced Data Security: Protects sensitive patient data, reducing the risk of breaches.
• Operational Continuity: Minimizes disruptions in critical systems that could impact healthcare delivery.
• Vendor Accountability: Encourages third parties to align with healthcare security standards.

A proactive approach allows healthcare organizations to manage risks, measure performance, and maintain a safer, more secure environment for both providers and patients.

Building a Comprehensive Strategy

To mitigate risks effectively, healthcare organizations must adopt a comprehensive approach that goes beyond visibility. Here are some key considerations for more strategic protection;

1. Maintain Full Visibility of Your Network – Understanding what devices and vendors are connected to your network is the first step. Identify all assets and third-party connections and review data handling practices of connected devices.
2. Conduct Vendor Risk Assessments – Before onboarding a vendor, conduct a thorough risk assessment to evaluate their security posture. Key areas to evaluate include data encryption practices, regulatory compliance, and past incidents of security breaches.
3. Segment Your Network – Implement network segmentation to isolate critical systems and limit the potential damage from a breach. For example, by creating separate zones for sensitive medical devices, office equipment, and guest Wi-Fi, or ensuring vendors only have access to the systems or data necessary for their work.
4. Deploy Anomaly Detection Systems – Use anomaly detection systems to identify unusual behavior or potential threats early. For instance, flag irregular activity in a vendor’s access pattern to identify potential breaches proactively.
5. Establish Patient-Centric Risk Assessment – Since healthcare is ultimately about patient outcomes, vulnerability management should prioritize patient safety. Conduct risk assessments with a focus on how vulnerabilities might impact patient care and score risks accordingly.
6. Invest in Early Warning Systems – Equip your systems with proactive tools that can identify emerging threats, such as vulnerabilities in third-party software, so you can address them before they become critical risks.
7. Demand Vendor Accountability – Hold vendors accountable for maintaining security standards. Define clear policies, and require regular attestation of compliance. Ensure vendors undergo periodic audits and have a structured incident response plan in place.

Fewer Blind Spots, Safer Patient Care

A robust third-party risk management program is critical for securing healthcare organizations as they pursue further patient service innovation. Discovering the blind spots is essential to having a true view of what is connected to your network, the patch status of various assets, and specific device vulnerabilities. Comprehensive visibility and security allow you to oversee any suppliers connected to your network and hold them accountable to your security standards. This, in turn, will make your facility a safer place from a cybersecurity perspective and keep patient data, services, and overall operations secure.