These days, the entire healthcare industry is growingly adopting cloud-based EHR or Electronic Health Record systems. This is why the effective management of third-party risks has become a major concern. Cloud-based EHR systems offer several perks, including cost efficiency, scalability, and enhanced data accessibility.
However, these perks come with their own set of challenges, specifically regarding the management of risks connected to third party vendors and suppliers. In our post today, we will examine the numerous challenges and solutions revolving around managed third party risk across cloud-based EHR systems, offering practical solutions for better risk management.
Understanding Third-Party Risks in Cloud-Based EHR Systems
The third party risks are associated with the various risks and threats posed by third party organizations that are involved in offering services, software, or structures for cloud-based EHR systems.
Such vendors can comprise cloud service providers, software developers, data storage companies, and IT support units.
These third-party services are critical to EHR systems’ performance and affordability, but they also create several risks, which include data breaches, service disruptions, and compliance issues.
Notable Third-Party Risks
Data Breaches: Data breaches are considered to be the most dangerous third party vendor risk. Since patients’ records are uploaded into cloud-based EHR systems, they become the primary choice for hackers.
The lack of proper controls in a third party vendor implies that this data is compromised and can be accessed by unauthorized personnel, causing major financial and reputational losses.
Service Disruptions: Third party services are important for the proper functioning of EHRs to be provided by third parties. They include but are not limited to technical problems, cyber attackers, or natural calamities that affect the availability and reliability of patient records.
Compliance Risks: Institutions operating in the healthcare sector are legally bound to adhere to some rules and regulations, including the Health Insurance Portability and Accountability Act, also known as HIPAA, in the United States of America.
For the healthcare organization to stay in compliance, it often requires third party vendors to adhere to these regulations. Non-compliance with this requirement incurs massive penalties as well as legal implications for the vendor in question.
Challenges in Managing Third Party Risks in Cloud-Based EHR Systems
Addressing the challenges of third party risk management in cloud-based EHR systems requires considering major factors.
The following can make it difficult to ensure compliance with third party vendor security and compliance requirements.
Vendor Selection and Due Diligence
The first step in this regard is to select the right third party vendors so as to avoid risks within the cloud-based EHR systems.
However, the process of selecting the right vendor might be complicated because there are many companies in the market with different levels of services and security.
The problem with due diligence is that it comprises strictly considering the vendor’s security measures, compliance records, and financial standing, which can take a lot of time.
Monitoring and Auditing
Specifically, constant checking of third party vendors is relevant to check for compliance and security continually.
However, in many organizations providing healthcare services, auditing often needs more adequate resources and expertise to do it properly for safeguarding from third party risks in cloud-based EHR systems.
This challenge is further made worse by the fact that cloud-based EHR systems are complex and are usually integrated with multiple vendors, each with its unique risks.
Contractual Obligations and SLAs
It’s important to understand that Contracts and Service Level Agreements (SLAs) play important roles in the third party risk management process.
These documents should make it equally clear how these vendors should approach security and compliance.
Nevertheless, getting better terms and making sure that all the actors involved keep to the agreed-on commitments may take a lot of work, especially for large and established vendors.
Incident Response and Recovery
As noted by the US Department of Health, third party risks compromised over 45 million patient data in 2021.
This is likewise important in case of security violations or disservices; nevertheless, it comes with a documented contingency plan.
It is, therefore, difficult to have a coherent response plan with the third party vendors that can be involved in case they need to be sufficiently prepared or in case communications networks are not set up well beforehand.
Solutions For Effective Third Party Risk Management in Cloud Based EHR Systems
The concept of TPRM software in cloud-based EHR systems is noble and essential, but the obstacles are huge.
However, if these risks are not well managed, they pose a real threat to the future of EHRs, and it is, therefore, important for healthcare organizations to develop a good risk management plan to deal with these threats.
Implement a Robust Vendor Risk Assessment Framework
A due diligence check before engaging the services of a third party vendor is vital, and that is why the creation of the vendor risk assessment framework is paramount within the cloud-based EHR system.
This framework also must contain the vendor’s security practices, compliance with the industry’s regulations, general financial health, and standing in the industry.
Healthcare organizations should also demand security audits for their vendors and secure proof that they are compliant with the regulations.
Establish Strong Contracts and SLAs
Third parties should understand the security and compliance requirements and service level agreements to be agreed upon through contracts.
It is also recommended that these documents that need to define how programs will protect data, how incidents will be handled, and responsibility in case there is a breach or service interruption are handled contain specific provisions that address issues of data protection and incident handling.
They should consult the legal teams so that the contracts and SLAs agreed reflect the best legal language and are more potent.
Continuous Monitoring and Auditing
Regular checking and monitoring of third parties are required as even if they are compliant today, they may not be so after some months or quarters.
The kind of monitoring system that healthcare organizations should adopt must be one that will use technology to monitor the vendors similarly to a guarantor; this tool should be configured to monitor vendor performance and flag any issue that has the potential to cause a problem and needs attention with robust risk compliance methods.
The vendors should also be checked frequently from time to time in an audit to ensure that they have implemented the set security and compliance framework as agreed upon.
Develop a Comprehensive Incident Response Plan
A good incident response plan is essential for reducing the effects of security breaches or service disruptions by third-party vendors within the cloud-based EHR systems.
This plan should state who would do what in an incident, how the communication would be handled, and the restoration processes to follow.
Healthcare organizations also need to exercise the plan frequently so that all concerned parties, including third-party vendors, fully understand the plan in case of an occurrence of an incident.
Foster Collaboration and Communication
Healthcare organizations’ relationships with third parties mean that third-party risk management involves everyone.
The benefits of frequency include milestones in potential risks and increasing awareness among all the involved parties of security and compliance measures.
The suppliers should maintain an open line with the healthcare organizations and ensure fluent discussions on possible threats and their management.
Conclusion
Third-party risk management is an essential element in the security and reliability of the EHR systems hosted in the cloud.
Indeed, given the growing adoption of cloud services in the healthcare sector, adequate third-party risk management will continue to be critical to protecting patient data.
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