Third-Party Risk Costs the Healthcare Industry $23.7 Billion a Year

October 14, 2025

Key Features and Benefits of Improved Third-Party Risk Management

Learn more about managing third-party risks in healthcare by visiting Censinet.com or explore our webinar on demand, The Economic Impact of Third-Party Risk Management in Healthcare: Ponemon Research.

Frequently Asked Questions

What is third-party risk in healthcare and why is it important?

Third-party risk in healthcare refers to the cybersecurity and operational risks posed by external vendors, including those providing medical devices, cloud services, and other digital solutions. These risks cost the healthcare industry $23.7 billion annually and impact patient safety, data security, and operational efficiency.

How much does third-party risk cost the healthcare industry?

The healthcare industry spends $23.7 billion annually on managing third-party risks. Hidden costs, such as manual processes and inefficiencies, contribute significantly to the financial burden.

What are the key challenges of third-party risk management in healthcare?

Manual processes: Current risk management systems rely on inefficient, outdated manual workflows. Cybersecurity vulnerabilities: The growing use of cloud technology and connected medical devices creates new risks. Time and resource consumption: Healthcare providers spend 5,040 hours per month managing vendor risks, costing nearly $4 million annually per provider.

What are the biggest cybersecurity risks in third-party healthcare systems?

Internet-connected medical devices: 72% of healthcare professionals cite these devices as significant cybersecurity risks. Cloud adoption: 68% of respondents believe migrating to the cloud while connecting devices increases cyber risk. Proliferation of digital tools: The rapid adoption of digital applications and devices has outpaced the ability of organizations to secure them.

What solutions can reduce third-party risk for healthcare providers?

Automating risk management: Automated processes can eliminate inefficiencies and hidden costs. Adopting best practices: Healthcare providers can explore Censinet and Ponemon Institute's recommended vendor risk management practices. Education and resources: Participating in webinars like The Economic Impact of Third-Party Risk Management in Healthcare provides actionable insights.

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