Healthcare organizations must overcome unique challenges in third-party relationship management. Patient data protection and uninterrupted care delivery raise the stakes significantly. Third-party risk management in healthcare has grown beyond basic vendor assessments. Modern solutions demand a complete approach that combines advanced technology, regulatory compliance, and proactive monitoring.
This piece will guide you to build a resilient third-party risk management program. Your organization, patients, and partnerships will stay protected in 2025 and beyond.
Would you like to change your healthcare organization’s third-party risk management strategy? Let’s take a closer look.
Understanding Healthcare’s Unique TPRM Challenges
Healthcare’s digital world is changing faster than ever, and organizations face new challenges in third-party risk management. Data breaches exposed a record $145.5 million health records in 2024, costing organizations an average of $4.35 million. Healthcare organizations now deal with an average of two data breaches daily.
Critical Patient Data Vulnerabilities
Healthcare organizations face unique data security challenges because of their sensitive patient information. Cybercriminals target healthcare service providers and business associates more frequently. These vulnerabilities affect:
- Electronic health records systems
- Medical device management platforms
- Patient billing systems
- Third-party software applications
Healthcare Supply Chain Complexities
Over the past five years, cyberattacks have increasingly targeted healthcare supply chains, particularly those involving medical equipment and software platforms. While exact figures are challenging to ascertain due to underreporting and the complex nature of supply chains, several notable incidents highlight the scope of this issue:
- HCA Healthcare Breach (2023): In July 2023, HCA Healthcare, a major U.S. hospital operator, experienced a data breach affecting at least 11 million patients across 20 states. The breach was traced to an external storage location used for automating email formatting, underscoring vulnerabilities in third-party software platforms.
- OneBlood Ransomware Attack (2024): In August 2024, OneBlood, a nonprofit blood distributor serving over 250 hospitals in the U.S. Southeast, suffered a ransomware attack. This incident disrupted blood supply chains, leading hospitals to implement emergency conservation measures.
- UnitedHealth’s Change Healthcare Breach (2024): In February 2024, hackers breached UnitedHealth’s Change Healthcare unit, potentially compromising the data of a third of Americans. This attack disrupted medical claims processing nationwide, affecting numerous healthcare providers and patients.
Regulatory Compliance Requirements
HIPAA compliance serves as the lifeblood of third-party risk management in healthcare. Healthcare organizations must meet several essential requirements:
- Written agreements with vendors handling protected health information
- Regular risk assessments of business associates’ security practices
- Continuous monitoring of cybersecurity measures
Outdated systems and a diverse mix of network users make these challenges more complex. Healthcare networks must accommodate employees, contractors, and vendors 1. Many healthcare applications still run on legacy systems, which creates additional cybersecurity vulnerabilities that need careful management.
Building Your TPRM Foundation
A systematic approach lays the groundwork for third-party risk management in healthcare. Successful TPRM programs rely on three core elements: reliable assessment frameworks, intelligent resource allocation, and strong stakeholder connections.
Risk Assessment Framework Development
A well-laid-out risk assessment framework that aligns with industry standards is the perfect starting point. Organizations that put proper governance frameworks in place are 33% more likely to spot critical vendor risks early. Here are the key elements to highly consider:
- Clear program objectives and policies
- Standard assessment criteria
- Automated vendor assessment tools
- Continuous monitoring protocols
Resource Allocation and Budget Planning
Smart budgeting plays a vital role in resource allocation. Healthcare organizations dedicate roughly 10.9% of their IT budgets to third-party risk management. Your budget should focus on:
- Technology investments for automation
- Staff training and development
- Continuous monitoring tools
- Incident response planning
Stakeholder Alignment Strategies
Strong stakeholder connections power successful TPRM programs. Organizations with clear roles and responsibilities manage third-party risks 40% more effectively. Good alignment needs clear communication channels between internal teams and external vendors.
A centralized tracking system for all contracts and attributes helps achieve this alignment. The system should offer customized, role-based views and automated workflow capabilities based on user or contract type. Organizations using such systems report better stakeholder coordination and risk visibility.
A reliable TPRM foundation goes beyond tools and processes. It creates a culture of risk awareness throughout your healthcare organization. These three core elements help develop a program that meets current needs and scales for future challenges.
Implementing Vendor Risk Management Solutions
An automated vendor risk assessment and continuous attack surface monitoring solutions marks a major step forward in third-party risk management for healthcare. AI has revolutionized how threats are detected, and organizations report up to 70% reduction in false positives with AI-powered systems.
Automated Vendor Assessment Tools
Automated assessment tools have changed how third-party vendors are reviewed. These systems process large amounts of data and spot potential risks accurately. Automated tools have shown they can:
- Cut assessment time by 40%
- Process security questionnaires immediately
- Confirm vendor responses automatically
- Create complete risk profiles
Continuous Attack Surface Monitoring
Continuous attack surface monitoring is real-time, ongoing assessments of an organization’s security measures and potential vulnerabilities. This type of monitoring continuously discovers, assesses, and mitigates potential risks across an organization’s entire attack surface — including third-party vendors.
Benefits of Continuous Attack Surface Monitoring
Continuous monitoring allows businesses to understand their security risks better, quickly manage and prioritize emerging threats, and strengthen their entire cybersecurity posture. In today’s world of constantly changing threats and emerging vulnerabilities, having always-on attack surface monitoring protects organizations from unwanted security risks.
The dynamic nature of businesses and their data requires risk management that adapts. Continuous attack surface monitoring removes security blind spots that previously occurred between assessments and reduces the mean time to repair any threats that emerge.
An organization is at risk anytime it allows a third-party into its digital environment. Companies must do their own due diligence before bringing a vendor in despite its perceived qualifications, references, and solutions. Determine a third party’s impact on your security before you enter into a contract.
Continuous attack surface monitoring equips organizations with accurate, real-time data on a vendor’s risk, which in turn offers more informed decision-making about vendor relationships and risk mitigation strategies. It’s also a scalable solution — as organizations increase the number of third-party vendors, continuous attack surface monitoring expands to cover the organization’s entire vendor ecosystem.
Creating a Culture of Risk Awareness
A strong culture of risk awareness is vital in healthcare third-party risk management. Third-party data breaches have increased by 287% in the last year. Creating this culture requires a detailed approach combining training, communication, and response planning.
Staff Training Programs
Organizations with detailed security training face 55% fewer security incidents. Implementing effective training programs is essential. The approach should focus on:
- Regular cybersecurity awareness sessions
- Role-specific risk management training
- Practical scenario-based exercises
- Vendor relationship management skills
- Compliance requirement updates
Communication Protocols
Clear communication reduces incident response time by 40%. Effective protocols focus on transparent reporting and regular updates between internal teams and third-party vendors. This strategy works well since third-party incidents now make up nearly 60% of all healthcare data breaches.
Incident Response Planning
Incident response planning and continuous attack surface monitoring create a detailed defense against emerging threats. A well-laid-out approach shows remarkable results:
- Immediate threat assessment and classification
- Coordinated response activation
- Stakeholder communication management
- Recovery and lessons learned documentation
Organizations that use these structured response plans are 33% more likely to contain a breach within 30 days. This fact matters because healthcare organizations, on average, deal with two security incidents daily.
Our experience in healthcare’s third-party risk management shows that success depends on making risk awareness part of organizational culture. Staff training, clear communication protocols, and resilient incident response planning create a framework that protects patient data and maintains operational efficiency.
Conclusion
Healthcare organizations are facing significant third-party risk management challenges. Data breaches and security incidents continue to rise at alarming rates. A detailed TPRM program that combines resilient assessment frameworks with proper resource allocation and team coordination protects sensitive patient data and ensures regulatory compliance.
Automated vendor risk management tools play a vital role in modern healthcare TPRM. These systems provide automated assessments, continuous attack surface monitoring of third parties, and breach alerts. The core team’s training and clear communication protocols work alongside these technological advances to create a strong defense against emerging threats.
Protecting patient data and improving operational efficiency needs constant watchfulness and adaptation. Your healthcare organization will be ready to face future third-party risks while ensuring continuous, quality care delivery through proper strategy implementation and regular program assessment. ProcessBolt’s third-party risk experts can help you employ state-of-the-art attack surface monitoring and vendor risk management solutions. Contact us today to learn more.
