13.6% Growth Expected in Hospital Cybersecurity Market to Combat New Threats
Over the next five to six years, growth in the healthcare cybersecurity solution market is expected to increase by 13.6%, according to a new Frost & Sullivan report.
Healthcare organizations now have to protect a much broader attack surface now that the vast majority of organizations have transitioned from paper to digital PHI formats. Keeping data protected from attacks by malicious actors is now a major concern for healthcare organizations. The threat landscape has changed considerably and traditional cybersecurity solutions are failing to prevent increasingly sophisticated attacks. The increase in cybersecurity threats will fuel considerable growth in the hospital cybersecurity market.
As we have seen in the past few weeks, the Department of Health and Human Services’ Office for Civil Rights has stepped up enforcement of HIPAA regulations and has issued a number of multi-million dollar files to companies that have failed to protect adequately protect the ePHI of patients. The FTC and state attorneys general have also taken action against healthcare organizations that have failed to protect the privacy of patients.
Frost and Sullivan expect regulation of the healthcare industry will continue to increase, with both state and federal regulatory bodies starting to scrutinize healthcare organizations to a much greater degree over the next few years.
Due to the increased risk of cyberattacks and the threat of regulatory fines from OCR and other regulatory bodies, healthcare organizations will be forced to increase spending on cybersecurity solutions to ensure that ePHI is adequately protected. Investment in sophisticated cybersecurity solutions is therefore required.
Frost & Sullivan predict that there will be an increase in cybersecurity spending in order to prevent increasingly sophisticated cyberattacks. Customers will demand that IT applications have “strong, baked-in security features,” capable of preventing attackers from gaining access to the applications, health data, and to the networks with which IT applications interact.
As Frost & Sullivan Principal Connected Health Analyst Nancy Fabozzi explains, “Hospitals are transitioning from their traditional reactive and fragmented approach to protecting privacy and security that is highly dependent on HIPAA compliance to a new approach and mindset that is proactive, holistic, and coordinated, anchored by integrated solutions designed to protect multiple endpoints.” This creates considerable demand for new solutions capable of preventing attacks, and many new business opportunities for existing vendors and new security firms.
Frost & Sullivan predict that IT application vendors will have to incorporate much better security controls into their products in order to continue to do business with the healthcare sector. Fabozzi says “Vendors need to innovate to survive, building or buying advanced functionality and next generation capabilities as the market moves from protecting the walled garden to protecting a vast connected perimeter.”