As cybersecurity threats intensify, healthcare leaders must remain vigilant. In 2024, third-party data breaches contributed to over 35% of network security incidents, underscoring the growing risk posed by external vendors.
Yet, modern healthcare systems depend on third-party services to streamline operations, support clinical workflows, and enhance patient outcomes. So, how can your organization reduce risk exposure while remaining efficient and compliant?
This article outlines key strategies to minimize third-party data breach risk and highlights what to look for in a secure, reliable partner.
Read more about how recent HIPAA proposals may impact your hospital.
The Growing Risk of Third-Party Exposure
Small practices and large health systems alike face mounting pressure to secure patient data. Cybercriminals continue to exploit third-party vendors, who may not have the same rigorous security controls as covered entities.
According to recent data, 4.25% of cyberattacks targeting healthcare organizations in 2024 originated from third-party administrative and software providers. These third-party data breaches can result in costly regulatory penalties, reputational harm, and significant operational disruptions.
Healthcare executives are responding by raising expectations: They require not just compliance, but transparency, verifiable safeguards, and a clear security posture from all vendors.
Liability Extends Beyond Your Walls
Under HIPAA and state-level privacy laws, covered entities share accountability for how their business associates handle protected health information (PHI). Even if a third-party partner is at fault, your organization could still face regulatory scrutiny and penalties.
A striking example occurred in 2023, when cybercriminals breached data from HealthEC, a third-party population health management platform. The incident compromised over 4.5 million patient records across 18 healthcare providers, leading to months of mitigation, regulatory reporting, and reputational damage.
This underscores a harsh reality: Even well-intentioned vendors can introduce significant risk if their security practices fall short.
What to Expect From a Trusted Partner
Few vendors can offer a documented history of secure, compliant operations. ChartRequest stands apart with a 12-year record of safeguarding health data for hospitals, law firms, insurers, and physician groups.
Security is embedded into every stage of ChartRequest’s record exchange process, which includes:
- Advanced authentication protocols, including multi-factor access controls
- Military-grade encryption of all health records in transit and at rest
- SOC 2-certified data auditing and monitoring
- Activity logging to track every user interaction within the platform
These controls align with — and often exceed — federal security requirements for electronic PHI.
Automation with Oversight Prevents Third-Party Data Breaches
Healthcare automation reduces administrative burden and accelerates turnaround times — but it can also create blind spots. Improper implementation may result in unsecured access points, data silos, or authorization errors that bad actors can exploit.
The National Library of Medicine recently highlighted the risks associated with AI-powered tools in healthcare, noting that poorly governed automation may introduce vulnerabilities if sensitive data is mishandled during system training or integration.
ChartRequest mitigates these risks through a hybrid strategy, combining automation with expert human oversight. This ensures every record is exchanged securely and in full compliance with HIPAA’s Privacy and Security Rules.
ChartRequest’s Hybrid Compliance Checklist
- HIPAA-compliant audit logs and access controls,
- SOC 2 Type 2 certification,
- Encryption at rest and in transit,
- Full compliance with the Minimum Necessary Rule,
- Double QA process for all requests our team fulfills,
- and More!
What to Ask Third-Party Vendors to Reduce Data Breach Risk
Before selecting a release-of-information or health IT vendor, conduct a comprehensive review of their security practices. Recommended steps include:
- Request documentation of HIPAA compliance and recent SOC 2 or HITRUST certifications.
- Review data breach history and ask for transparency about past incidents and remediation protocols from third-party vendors.
- Schedule a live demo to evaluate user access controls, audit functionality, and encryption standards.
- Review customer testimonials and third-party reviews for insights into real-world performance.
Frequently Asked Questions (FAQs)
❓ What is the leading cause of third-party data breaches in healthcare?
The most common causes include insufficient access controls, poor encryption practices, and lack of compliance monitoring among business associates.
❓ Can a healthcare organization be penalized for a third-party vendor’s data breach?
Yes. Under HIPAA, covered entities are ultimately responsible for the actions of their business associates unless appropriate safeguards and contracts are in place.
❓ How can you tell if a vendor is truly HIPAA-compliant?
Look for independent attestations (e.g., SOC 2), documented privacy policies, zero-breach history, and live demonstrations of audit functionality and data access protocols.
❓ How does ChartRequest ensure record security?
ChartRequest combines encryption, access controls, human oversight, and real-time audit logs to prevent unauthorized access and reduce breach risks.
A Proven Commitment to Privacy and Compliance
Since 2012, ChartRequest has enabled providers to share patient records quickly and securely, supporting millions of compliant disclosures without a single reported breach. Its team continuously monitors regulatory updates and implements platform enhancements to stay ahead of evolving HIPAA requirements.
The stakes for patient privacy and organizational security have never been higher. As your team evaluates third-party vendors, prioritize partners who demonstrate a proven track record, robust security infrastructure, and a commitment to preventing data breaches.
ChartRequest provides complimentary educational resources to help healthcare leaders better understand third-party risk, HIPAA changes, and best practices for digital record exchange.
Download our 2025 HIPAA Compliance White Paper to explore how your organization can stay protected in today’s evolving regulatory landscape.
