Higher labor costs, inflation hindering health systems' abilities to bolster cybersecurity

Cyber risks for hospitals and health systems are higher than other sectors such as banking, technology and telecommunications, yet with hospitals facing financial challenges from increased labor costs, cybersecurity has fallen on the back burner, according to a Nov. 22 report from credit company Moody's.  

Five things from the report to note about the state of cybersecurity in the healthcare sector:

  1. Remote work, telehealth and new technologies, such as remote monitoring services and connected medical devices, are allowing hackers to gain more access to hospitals and health systems.

  2. Healthcare systems will need to deploy and create additional resources to thwart cyberattacks as these exposure risks rise.

  3. With hospitals facing heightened financial stress from elevated labor costs and high inflation, there have been little funds left over for cyber risk defenses.

  4. Cyber insurance, which is widely held among hospitals, is becoming increasingly expensive and is providing less coverage.

  5. U.S. health insurers have increasingly become a target for cyberattacks, especially ransomware, but their threat level isn't as high as that of health systems and hospitals.

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