Cloud Security in Healthcare: Strategies for Compliance

The vast benefits of cloud computing in healthcare are driving rapid adoption across the sector. For all healthcare entities, cloud environments can be more cost-effective compared to on-premises data centers. Plus, cloud technology can support modern electronic health records (EHR) systems, telemedicine, remote patient monitoring, and more solutions.

The innovation and flexibility enabled by the cloud can significantly improve the employee and patient experience, but these advancements also introduce new security risks. Without robust security measures, threats like data breaches, misconfigurations, and insider threats can derail or completely shut down healthcare facilities. This article outlines key components of healthcare cloud security, major risks, and best practices.

The Importance of Securing Healthcare Data

As the healthcare sector grows more interconnected, it has also become more vulnerable to cybercrimes, data breaches, and natural disasters. Patients and healthcare providers need reliable access to electronic protected health information (ePHI), but if patient records are not properly secured, it can severely impact privacy, safety, and trust.

In the event of a disruption, inadequate data protection and backup can even lead to more medical errors and delays in diagnostics, treatment, and life-saving care. Due to these ramifications, substantial PHI protection is mandated by regulatory standards like the Health Insurance Portability and Accountability Act (HIPAA). It is also required by frameworks like the Health Information Technology for Economic and Clinical Health Act (HITECH), which provide a certifiable approach to managing compliance and risk.

Healthcare facilities that fall victim to a breach may also face financial penalties, legal issues, ransom requests, and reputational ramifications. According to IBM’s 2025 Cost of a Data Breach report, healthcare breaches are still the most expensive out of every industry, averaging $7.42 million and remaining the highest for 14 years in a row.

What Are Key Components of Healthcare Cloud Security?

To protect patient data in the cloud, healthcare organizations need to implement security measures such as data encryption, access management, network security, threat detection, and disaster recovery plans. These practices must satisfy regulatory requirements, such as HIPAA and HITECH.

Data Encryption

Data encryption safeguards data by making it unreadable to bad actors trying to access it. Electronic PHI should be encrypted in transit and at rest, meaning when it is being transferred and when it is being stored. An encryption key is required to make use of the data. 

Identity and Access Management (IAM)

Identity and Access Management (IAM) systems prevent unauthorized users from accessing cloud resources, as well as sensitive applications and data. With IAM systems, access rights can be set based on roles or highly tailored to each individual. To ensure the highest levels of security, access should be granted according to the principle of least privilege, which only lets individuals retrieve information that is required to perform their duties. 

Network Security

Cloud network infrastructure can be protected with a number of measures, including firewalls, network segmentation, and intrusion detection systems. Firewalls operate by filtering traffic coming in and leaving the network, while network segmentation contains threats in isolated parts of a network. Intrusion detection systems will survey the environment for malicious activity. These efforts, when combined, can secure the data within a network. 

Importantly, strategists should also drive adoption of zero-trust architectures that combine microsegmentation, identity-based access, and CSP-native intrusion detection to contain threats in dynamic hybrid environments.

Threat Detection

Catching a threat in real time is the best way to prevent further fallout. Organizations may use artificial intelligence and machine learning (AI and ML) to instantly identify anomalous behavior and other suspicious activities, which deviate from expected patterns. Proactive responses can limit the long-term consequences of a security breach.

Disaster Recovery

Not all incidents can be perfectly prevented, which is why disaster recovery measures are so critical. These work to ensure that business operations continue smoothly even amidst a disruption. This can include having automated failover systems, geographically distinct backups, communication plans, and recovery protocols that meet certain recovery point and recovery time objectives (RPO/RTO).

Regulatory Compliance

In addition to meeting HIPAA and HITECH requirements, healthcare cloud security requires a governance framework that unifies all regulatory and security obligations. Leading healthcare organizations use frameworks like the HITRUST CSF or NIST Cybersecurity Framework to map HIPAA, HITECH, and other obligations into a single, auditable structure. This allows cloud strategists to manage risk holistically across hybrid and multicloud environments, rather than treating compliance as a siloed task.

Cloud service providers like AWS and Microsoft Azure typically enter a Business Associate Agreement (BAA) with healthcare customers, agreeing to satisfy HIPAA requirements with their infrastructure. However, this agreement only covers the cloud provider’s responsibility. Still, healthcare organizations have a responsibility to secure sensitive patient data in the cloud with proper configurations, strict access controls, logging, and application-level protections.

Cloud strategists must also ensure governance programs explicitly map who owns which controls (the CSP, MSP, or internal IT) and maintain continuous oversight through dashboards and audits.

Major Risks of Cloud Computing in Healthcare

Healthcare is one of the most targeted industries by bad actors due, in part, to the sensitive nature of ePHI. Cybercriminals can leverage this information for identity theft, critical infrastructure disruption, and other damaging motives.

The cloud can expand your potential attack surface, especially if you’re still leveraging legacy systems alongside your modern environment. However, cyber threats like malware and ransomware attacks aren’t the only security concerns healthcare organizations may face. It’s also important to protect against insider threats, misconfigurations, and risks from third-party vendors.

Ransomware Attacks

With ransomware, threat actors encrypt a healthcare system’s data, asking the organization to pay a ransom before they can regain access. In the case of double extortion ransomware, cybercriminals may also threaten to publicly release or sell sensitive data.

All ransomware attacks can result in widespread outages and significant harm. For example, a ransomware attack on Aspire Rural Health System resulted in the exposure of the ePHI of almost 140,000 individuals. In another case, the BlackCat ransomware group targeted Change Healthcare, forcing the victim organization to disconnect. This led to disruptions for thousands of patients and providers, including delayed authorizations and cash flow issues.

Data breaches can greatly delay the time of patient care, result in large financial losses, and impact the accessibility of medical records, insurance benefits, or pharmacy services.

Insider Threats

Insider threats can also pose major data security issues for healthcare organizations. In these cases, internal employees who have access to specific data and systems will expose data, either intentionally or unintentionally, in a way that threatens the safety of patients.

In 2025, a “rogue employee” at Berkshire Health Systems accessed multiple patient records without a business purpose. While the data was only viewed and not downloaded, printed, or altered in any way, the fallout could have been more severe. Having automated systems that flag anomalous behavior like this can prevent employee-driven security and compliance risks from becoming more severe.

Security Misconfigurations

Expanding your environment to the cloud also introduces new complexities associated with configuration. IT teams need to change default settings, tailor access controls appropriately, and encrypt sensitive data in cloud storage, for example. Leaving parts of the cloud environment misconfigured can leave easy points of access for attackers to exploit. For example, a common issue can arise when cloud buckets are left open to the public internet.

Third-Party Vendor Risks

Any vendors that healthcare providers use can also bring in new risks. In 2024, Episource, a third-party healthcare services firm, experienced a data breach that led to 5.4 million records being exposed. Since the firm provides risk adjustment and medical coding services to healthcare providers, this affected many health systems who partnered with the company.

Third-party companies are potential entry points for data breaches, so it’s important to understand who you are bringing in and what their security controls are before selecting vendors. If a breach does occur, healthcare organizations need to have a plan for how to contain the threat from an outside partner.

Cloud strategists should establish a vendor onboarding process that requires proof of security certifications, such as HITRUST CSF or SOC 2 Type II, ensuring vendors align with healthcare compliance obligations before integration. Additionally, contracts should clearly document vendor accountability for data protection, breach notification, and compliance controls. Mapping a shared responsibility model for each vendor can eliminate ambiguity.

Ongoing vendor oversight, including regular risk assessments and mandatory audit reporting, ensures security posture doesn’t degrade after onboarding.

6 Best Practices for Cloud Security in Healthcare

To achieve optimal security in the cloud, healthcare organizations shouldn’t just focus on implementing one practice. Instead, they need robust security measures that improve their security posture against potential threats while ensuring continuous compliance.

1. Implement Strong Access Controls

Healthcare professionals should only have access to patient data and other resources that are relevant for their work or specific cases. Implementing strong access controls, including role-based access and multi-factor authentication, prevents unauthorized access and limits unnecessary visibility on sensitive information. Zero-trust architecture can also be implemented, which works by not trusting any user or device by default, requiring verification and authentication every time.

2. Regularly Update and Patch Systems

Known vulnerabilities can be prime targets for cybercriminals. Regular patches and updates can address vulnerabilities in the cloud, closing security gaps and reducing the likelihood of attacks. Mature healthcare cloud programs integrate vulnerability management into DevSecOps (development, security, and operations) pipelines, enabling continuous patching and automated remediation instead of ad hoc updates.

3. Conduct Regular Security Audits and Align with Governance Frameworks

Another proactive measure healthcare organizations can take is conducting regular security audits to find weaknesses and ensure compliance in cloud-based systems. Audits can include assessments of risks and regulatory policies, noting how the environment is configured, where ePHI is stored, what software solutions are being used, and what security policies are currently in place.

Whether you’re leveraging the public, private, or hybrid cloud, these assessments can uncover potential vulnerabilities and risks that are worth addressing. Healthcare IT experts can provide an outside perspective, further preventing missed issues.

Adopting a unified governance framework such as HITRUST or NIST CSF further helps align security, compliance, and risk management across hybrid and multicloud environments.

4. Implement Continuous Monitoring

Healthcare organizations are prone to ongoing threats, making a proactive approach like continuous monitoring necessary. Security Information and Event Management (SIEM) and Managed Detection and Response (MDR) are approaches that collect security logs and services across your cloud environment, making it easier to identify threats and respond to them in real time. 

5. Train Staff on Cybersecurity Awareness

Human error can be one of the biggest vulnerabilities. Training healthcare personnel to spot potential phishing attacks, handle data appropriately, and respond to possible threats are essential components in building a stronger security posture. Security awareness training should be embedded into the organization’s governance framework, with continuous reinforcement and measurable outcomes tracked by compliance teams.

6. Develop Incident Response and Disaster Recovery Plans

Even with strong prevention in place, data breaches can happen, which makes incident response and disaster recovery plans crucial for cloud-based healthcare systems. These plans should prioritize containment, restoration, and business continuity. Disaster recovery plans shouldn’t just be implemented in an emergency, either. Organizations should test them by simulating a disaster to confirm they will work in critical moments.

Future Trends in Healthcare Cybersecurity

As digital transformation and cloud migration efforts continue, healthcare organizations will experience additional cybersecurity challenges. Expect to see security measures evolve with these emerging technologies.

Growing Importance of Telemedicine Security

Telemedicine improves convenience and accessibility for patients who have access to an internet connection. While this technology can greatly improve the patient experience, it can also usher in new challenges when it comes to securing the connection and data integrity on patient and provider devices alike.

New threats, such as deepfakes, can target both sides of a telemedicine interaction, exposing sensitive data or resulting in financial exploitation. End-to-end encryption and strong authentication are necessary to secure telemedicine platforms and devices, and just like other electronic communications, these platforms need to be HIPAA-compliant.

Advancements in Cloud Security Technologies

Cloud security is also evolving alongside new threats. AI/ML technologies can be used to mimic targets and exploit people, but they can also be used to greatly enhance cybersecurity. AI/ML solutions can process datasets far beyond human capabilities, rapidly identifying patterns of malicious activity and odd behaviors that may indicate impending or recent attacks.

Automated processes can find, contain, address, and even predict cybersecurity incidents. The more these tools can learn from past data, the more accurate they will become in addressing incidents and creating relevant tasks. 

The healthcare industry is also increasingly adopting zero-trust architectures, supported by cloud-native identity and access controls, to protect against insider threats, third-party risks, and lateral movement in hybrid environments.

Simultaneously, cloud providers are introducing ransomware protection services like immutable backups and isolated recovery vaults. These capabilities ensure healthcare organizations can rapidly restore operations without paying ransoms in the event of an attack.

Optimize Your Healthcare Cloud Security with TierPoint

As cloud technology continues to drive operational efficiency and better patient experiences, healthcare organizations must migrate to modern IT environments to support innovation and lower costs. However, both the public and private cloud can introduce unique challenges that you’ll need to proactively address.

IT teams can leverage partners like TierPoint to reduce risks, establish a strong security posture, and grow in the cloud while meeting HIPAA, HITRUST, and other regulatory requirements. We develop the strategic roadmap that helps you achieve predictable outcomes and reduce migration risks like downtime.

Leverage our extensive, cloud-agnostic expertise across the healthcare sector to protect your data and thrive in the cloud.

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