Cybersecurity in Healthcare ERP:
Strategies for Protecting Patient Data
If a cyberattack shuts down your healthcare ERP system for days, can your patients still receive the care they need?
Healthcare organizations face a growing cybersecurity crisis, with the American Hospital Association reporting that the healthcare field experienced more cyberthreats in 2024 than any other critical infrastructure industry, and related research found that, as of early 2025, 92% of healthcare organizations experienced at least one cyberattack in the past 12 months. Additionally, McKinsey & Company reports that healthcare provider organizations incur the highest cost for data breaches of any industry, averaging $9.8 million per incident, which is more than 1.5 times the financial services industry’s average cost of $6.1 million.
Beyond financial losses, cyberattacks directly threaten patient care and organizational survival. For small-to-medium-sized healthcare practices and senior living centers, this reality demands immediate attention to how enterprise resource planning (ERP) systems handle patient data protection.
The Current Threat Landscape
Rising Attack Frequency and Sophistication
Cyberattacks targeting the healthcare sector have continued to intensify, with hundreds of healthcare cyberattacks reported thus far in 2024. These aren’t simple data theft attempts; they’re sophisticated operations designed to maximize disruption to patient care.
The most significant cyberattack in U.S. healthcare history occurred when ransomware hit Change Healthcare, impacting every hospital in the country and exposing the health data of 190 million people. This incident highlighted how interconnected healthcare systems create cascading vulnerabilities that can paralyze entire care networks.
ERP Systems as Prime Targets
Healthcare ERP systems are particularly attractive to cybercriminals because they:
- Centralize vast amounts of protected health information (PHI)
- Control critical business functions including billing, scheduling, and supply chain management
- Often integrate with multiple third-party vendors and systems
More than four out of five physicians have been victims of some type of cyberattack, with “phishing” being the most common (55%). These attacks frequently target ERP login credentials to gain system-wide access.
The Critical Role of ERP Selection in Cybersecurity
Cloud-Native vs. Legacy Systems
The choice between modern cloud-based ERP systems and legacy on-premise solutions directly impacts cybersecurity posture. According to a 2021 survey, 73% of the healthcare industry uses legacy technology, leading to manual reporting processes that are time-consuming and prone to human error.
Modern cloud ERP systems can offer several security advantages:
>Built-in Security Architecture: Cloud-native systems are designed with security as a foundational element, not an afterthought. They include encryption, multi-factor authentication, and automated security updates as standard features.
Compliance by Design: Healthcare ERP software like Sage Intacct helps healthcare organizations maintain HIPAA compliance through advanced security controls and audit trails.
Vendor Security Expertise: Cloud ERP providers invest significantly more in cybersecurity expertise than individual healthcare organizations can afford internally.
“Beyond financial losses, cyberattacks directly threaten patient care and organizational survival.”
Integration and Third-Party Risk Management
Third-party breaches remain top concerns for 2025, with supply chain attacks becoming increasingly common. ERP systems must be evaluated not only for their internal security but also for how they manage integrations with:
- Electronic Health Records (EHR) systems
- >Medical devices and IoT endpoints
- Payment processing platforms
- Business intelligence tools
- Vendor management systems
Essential Cybersecurity Strategies for Healthcare ERP
1. Comprehensive Risk Assessment
Before selecting or upgrading an ERP system, healthcare organizations must conduct thorough risk assessments that include:
- Asset Inventory: Maintaining comprehensive and continuously up-to-date visibility across the whole organization is the first step in healthcare cybersecurity.
- Data Flow Mapping: Understanding how PHI moves through the ERP system and its integrations
- Vendor Security Evaluation: Assessing third-party providers’ cybersecurity practices and compliance certifications
2. Zero Trust Architecture Implementation
Organizations must adopt a zero-trust approach that treats all access requests as potentially malicious, regardless of source. For healthcare ERP systems, this means:
- Network segmentation to isolate ERP systems from other network traffic
- Multi-factor authentication for all system access
- Role-based access controls with principle of least privilege
- Continuous monitoring and verification of user activities
3. Advanced Threat Detection and Response
AI-driven threats are becoming increasingly sophisticated, requiring equally advanced defense mechanisms. Healthcare organizations need ERP systems that incorporate:
- Real-time threat detection powered by artificial intelligence
- Automated incident response capabilities
- Behavioral analytics to identify unusual user patterns
- Integration with security information and event management (SIEM) systems
4. Regular Security Assessments and Updates
The HITECH safe harbor requires healthcare organizations to adopt “recognized cybersecurity practices” to qualify for reduced penalties in case of breaches. This includes:
- Regular vulnerability assessments and penetration testing
- Automated security patching and updates
- Compliance monitoring and reporting
- Business continuity and disaster recovery planning
The Value of Expert Technology Advisory
Why Healthcare Organizations Need Specialized Guidance
Gartner predicted that by the end of 2025, lack of talent or human failure will be responsible for over half of significant cyber incidents. Small-to-medium-sized healthcare organizations face particular challenges:
- Limited internal IT security expertise
- Budget constraints for cybersecurity investments
- Complexity of healthcare compliance requirements
- Rapidly evolving threat landscape
The Technology Advisor Advantage
Working with experienced technology advisors provides several critical benefits:
Industry Expertise: Advisors specializing in healthcare understand the unique regulatory requirements and operational challenges facing medical practices and senior living centers.
Vendor Agnostic Approach: The best advisors maintain an agnostic approach, recommending solutions based on organizational needs rather than vendor relationships.
Holistic Security Strategy: Rather than focusing solely on ERP selection, experienced advisors help organizations develop comprehensive cybersecurity strategies that address people, processes, and technology.
Ongoing Support: Dedicated support teams ensure that organizations maximize their software investment, benefiting from continuous updates and expert guidance tailored to their needs.
Regulatory Compliance and Future-Proofing
Evolving Compliance Requirements
Several bipartisan bills have been introduced to strengthen cybersecurity requirements in the healthcare sector, including the Health Infrastructure Security and Accountability Act of 2024. Healthcare organizations must ensure their ERP systems can adapt to evolving regulatory requirements.
Key compliance considerations include:
- HIPAA Security Rule requirements for PHI protection
- State data protection laws and breach notification requirements
- Medicare and Medicaid compliance for billing and claims processing
- Emerging cybersecurity frameworks and performance goals developed by HHS in cooperation with the Healthcare and Public Health sector
Building Cyber Resilience
Technology failures and cyber outages can disrupt operations for extended periods, with one in three physicians reporting their practice experienced a cyberattack-related business shutdown. Resilient ERP systems must include:
- Redundant data centers and backup systems
- Real-time data replication and recovery capabilities
- Business continuity planning and testing
- Staff training and incident response procedures
Key Takeaways for Healthcare Leaders
- Cybersecurity is a Patient Safety Issue: In 2023, >71% of healthcare organizations surveyed who had suffered cyberattacks reported poor patient outcomes because of delays in procedures and tests following the attacks.
- ERP Selection Directly Impacts Security Posture: Modern cloud-based ERP systems offer significantly better security capabilities than legacy on-premise solutions, with built-in compliance features and professional security management.
- Integration Security is Critical: Third-party breaches remain a top concern for 2025. ERP systems must be evaluated for their ability to securely manage integrations with other healthcare technologies.
- Expert Guidance is Essential: The complexity of healthcare cybersecurity requires specialized expertise that most SMB organizations cannot maintain internally. Working with experienced technology advisors ensures proper ERP selection and implementation.
- Proactive Approach Reduces Risk: A survey of physicians by the American Medical Associationfound that 85% believe it is crucial to share electronic data outside of their health system for quality care but want to do it safely. Proactive cybersecurity measures enable secure data sharing while protecting patient privacy.
- Compliance Benefits Healthcare Practices: Organizations that adopt recognized cybersecurity practices may qualify for reduced penalties under HITECH safe harbor provisions.
Securing Your Healthcare Organization’s Future
The cybersecurity landscape for healthcare organizations will only become more challenging. Selecting the right ERP system and working with experienced technology advisors can mean the difference between becoming another breach statistic and maintaining secure, efficient operations that protect both patient data and care quality.
The time for reactive cybersecurity approaches has passed. Healthcare organizations must take proactive steps now to implement comprehensive cybersecurity strategies centered around secure, modern ERP systems and expert guidance.
Ready to strengthen your healthcare practice’s cybersecurity posture?
Contact Net at Work today to discuss how our healthcare ERP expertise and comprehensive technology advisory services can help you protect patient data, ensure compliance, and build resilient operations for the future.
