The Hidden Threat in Healthcare: Why Third Party Risk Management Can’t Wait

Part 2: High-impact steps to build a modern third-party risk management program

In Part 1 of this blog, I noted the rising risk hospitals and healthcare organizations face in an increasingly interconnected world.

Every healthcare organization has growing list of third‑party vendors—EHR providers, billing companies, cloud platforms, telehealth applications, medical device software, and countless subcontractors. These partnerships fuel innovation and efficiency, but they also open the door to one of the fastest‑growing threats in healthcare cybersecurity: third‑party risk.

To defend against these escalating threats, healthcare organizations must adopt a proactive, comprehensive third-party risk management (TPRM) strategy. Based on the latest research and industry trends, here are the highest‑impact practices:

1. Implement Continuous, Real-Time Vendor Monitoring

Static, once-a-year assessments are no longer enough. Real‑time monitoring tools provide continuous oversight of vendor security posture, track anomalies, and detect emerging threats long before they become incidents.

2. Use AI‑Driven Risk Assessment Tools

AI enhances TPRM by:

• Automating vendor questionnaires

• Identifying hidden risks

• Predicting likelihood of vendor compromise

• Improving speed and accuracy of assessments

This is becoming a foundational approach as the vendor ecosystem grows more complex and attack vectors multiply.

3. Strengthen Compliance Framework Alignment

Leading healthcare organizations are aligning TPRM to recognize cybersecurity frameworks such as:

• NIST Cybersecurity Framework 2.0

• Healthcare & Public Health Cybersecurity Performance Goals (HPH CPGs)

• Health Industry Cybersecurity Practices (HICP)

Third‑party risk and supply chain vulnerabilities consistently rank among the least mature areas for healthcare organizations, indicating a critical gap to prioritize.

4. Enforce Strict Vendor Access Controls & Zero Trust

Adopt Zero Trust principles:

• Verify every user and device

• Limit vendor access to the minimum required

• Enforce strong authentication and authorization

• Monitor all access continuously

With more than 60 percent of breaches originating from outside partners, limiting vendor privileges is essential.

5. Establish Strong Business Associate Agreements (BAAs)

A compliant BAA should mandate:

• Security controls

• Breach notification timelines

• Subcontractor oversight

• Right-to-audit provisions

• Data destruction requirements

Gaps in BAAs are one of the leading contributors to third‑party PHI exposure.

6. Conduct Robust, Periodic Vendor Audits

Comprehensive audits should evaluate vendor compliance, controls, incident response posture, and subcontractor risk (vendors’ vendors). Managed IT partners can provide structured audits and remediation plans for compliance with HIPAA and related standards.

7. Develop a Cross-Functional Governance Model

TPRM must integrate:

• IT security

• Compliance/legal

• Supply chain

• Clinical leadership

• Executive sponsors

Effective programs break down silos and ensure that vendor risk is assessed before, during, and after procurement.

8. Vendor Offboarding Governance

Ensure you have an offboarding process that securely and comprehensively concludes all vendor activities. This process should validate that all access permissions, data‑retention requirements, and contractual obligations are fully closed out in accordance with organizational policies.

It must also include formal confirmation that any vendor‑held data has been securely destroyed or returned as required by contract and regulatory standards. Upon completion, the vendor inventory and all associated documentation should be promptly updated to reflect the termination of the relationship and ensure an accurate, compliant offboarding record.

Final thoughts

Healthcare organizations face an urgent choice: Upgrade third‑party risk management now, or face escalating threats that can interrupt care, expose millions of patient records, and cost the organization millions.

Every new vendor relationship introduces risk. Every integration creates a potential vulnerability. And every day without robust oversight increases the likelihood of a breach.

Strategic partners like CorePlus can help you take control of third-party risk, leveraging a managed service (security) provider and allowing for end-to-end visibility, automated oversight, and continuous monitoring across the entire vendor ecosystem. Instead of operating with blind spots or relying on manual, reactive processes, CorePlus helps teams detect risks early, streamline vendor onboarding, and stay audit-ready year-round—all while preventing costly

disruptions before they start.

If your organization is dealing with compliance pressure, expanding vendor networks, staffing constraints, or uncertainty around data handling, now is the moment to modernize your third‑party oversight.

Author: Ed Wurster, III, manager, business continuity and cyber resilience