Third-Party Vendor Risks and How Healthcare Cybersecurity Solutions Can Help

78% of Healthcare Organizations Faced a Data Breach Last Year—How Many Were Due to Third Parties?

Healthcare security is in trouble. Data breaches keep rising, and third-party vendors are a major reason why. They handle sensitive patient data, manage IT systems, and even provide remote access solutions. Yet, they remain one of the weakest links in the security chain.

In 2023, nearly 78% of healthcare organizations reported a data breach, with over half of them linked to third-party vendors. That’s a serious problem when you consider that healthcare data is 50 times more valuable on the dark web than financial data.

So, how do we stop this? Let’s break it down.

Understanding Third-Party Vendor Risks in Healthcare

Third-party vendors play a huge role in healthcare. They provide billing services, cloud storage, remote IT support—you name it. But every extra connection creates another risk.

Here’s why they’re a problem:

• Unsecured Remote Access – Vendors often need access to hospital systems, but many use weak security measures.
• Data Sharing Without Strong Controls – Sensitive patient records are often shared across multiple platforms.
• Lack of Compliance with Security Standards – Many vendors don’t meet the same security requirements as hospitals.
• Supply Chain Attacks – Hackers target vendors to get into larger networks.

These risks aren’t just theoretical. The American Medical Collection Agency breach in 2019 exposed nearly 25 million patient records due to a third-party vendor. And that’s just one example.

How Third-Party Data Breaches Impact Healthcare Organizations

A breach doesn’t just mean leaked data—it’s a full-blown crisis. Hospitals deal with lawsuits, reputation damage, and a variety of compliance penalties. Worse, patient care also gets disrupted.

• Financial Losses – The average cost of a healthcare breach in 2023 was $10.93 million per incident.
• Regulatory Fines – HIPAA and GDPR violations can result in hefty penalties.
• Operational Disruptions – Ransomware attacks have led to postponed surgeries and delayed treatments.
• Loss of Patient Trust – 68% of patients say they’d switch providers after a data breach.

Simply put—healthcare organizations can’t afford these risks.

The Most Common Cyber Threats from Third-Party Vendors

It’s not just one type of attack. Threats come from multiple angles, making security even harder. Without strong controls, a single compromised vendor can bring an entire hospital to a standstill.

• Phishing Attacks – Vendors fall for fake emails, giving hackers access.
• Unpatched Software – Old systems with security flaws are easy targets.
• Weak Passwords & Credentials – Many vendors don’t enforce strong authentication.
• Lack of Network Segmentation – Vendors often have full access instead of limited permissions.

Regulatory Challenges and Compliance Risks in Vendor Security

Hospitals must follow strict regulations—but vendors don’t always do the same. That creates compliance gaps.

When a vendor fails to comply, the healthcare provider is still responsible. That means potential lawsuits, fines, and damage to their reputation.

Best Practices for Securing Third-Party Vendor Access

Tightening security doesn’t have to be complicated. A few smart practices go a long way in protecting patient data and preventing breaches. These steps aren’t optional anymore—they’re essential for safeguarding healthcare systems.

• Limit Vendor Access – Only give vendors the minimum access they need.
• Use Multi-Factor Authentication (MFA) – Require extra security layers for logins.
• Regularly Audit Vendor Security – Make sure they’re following best practices.
• Encrypt All Data Transfers – Prevent unauthorized access to patient records.
• Establish a Vendor Risk Management Program – Continuously monitor all third-party connections.

How VPNs and Network Security Solutions Protect Healthcare Data

One of the best ways to secure third-party access is by using VPNs and network security solutions. They create encrypted tunnels that prevent unauthorized access, ensuring only verified users can connect.

Benefits of VPN-based security:

• Secured Remote Access – Vendors can only access what they’re authorized to.
• Data Encryption – Even if data is intercepted, it remains unreadable.
• IP Whitelisting – Restrict access to known and approved devices.
• Zero Trust Principles – Continuous verification for every login attempt.

A strong VPN solution ensures that vendors don’t become security loopholes.

Zero Trust: A Critical Approach to Managing Third-Party Risks

The old model of “trust but verify” doesn’t work anymore. The new approach? Zero Trust Security—which assumes every connection is a potential threat.

• Least Privilege Access – Vendors get access to only what’s necessary.
• Continuous Authentication – Every login is verified, even after access is granted.
• Micro-Segmentation – Different systems are isolated to prevent large-scale breaches.

Zero Trust makes it much harder for hackers to exploit third-party vulnerabilities.

Choosing the Right Healthcare Cybersecurity Solutions for Vendors

Not all security solutions are built for healthcare. Some might check a few boxes but fall short on key protections when evaluating a healthcare cybersecurity solution. A strong solution should include:

• HIPAA and GDPR Compliance – Ensure it meets industry regulations.
• Scalability – Can it handle multiple vendors securely?
• Ease of Implementation – Can it be deployed without disrupting workflows?
• Strong Encryption & Secure Access Controls – A must-have for protecting patient data.

This is where PureDome steps in.

PureDome: Secure, Scalable, and Built for Healthcare Vendor Security

Third-party vendor risks aren’t going away. But with the right approach—and the right tools like PureDome—healthcare organizations can stay secure while continuing to rely on external partners.

PureDome is a healthcare security solution that offers a dedicated VPN solution designed to secure third-party access. It enables healthcare providers to:

• Grant controlled, encrypted access to vendors without exposing the whole network.
• Use Dedicated IPs to track and authenticate vendor connections.
• Implement Zero Trust Security with strict access controls and continuous verification.
• Ensure compliance with industry regulations through built-in security features.

Want to see how PureDome can help your healthcare organization? Learn more here.