IT leaders in healthcare are no strangers to pressure. They are expected to safeguard sensitive patient data, maintain compliance, and ensure teams have the technology needed to support clinical operations amid shrinking budgets and rising cyber risks. Cybercriminals know this, and they’re exploiting it.
The U.S. remains the top targeted region for ransomware attacks against healthcare organizations. The wealth of sensitive data and life-or-death stakes make these organizations more likely to pay ransom demands.
As the threat environment grows more hostile, healthcare providers are facing an urgent need to bolster cybersecurity defenses. Unfortunately, many of these organizations are simultaneously dealing with financial constraints that are further exacerbated by funding cuts from both state and federal governments, jeopardizing the security of the healthcare ecosystem.
To overcome these challenges on a budget, organizations first need to understand which mitigation strategies best fit their needs in the current threat landscape, and how to implement them.
The Impact of Funding Cuts on Healthcare Security
The potential fallout from cyberattacks in healthcare is profound. A breach can halt critical operations, delay life-saving surgeries, and put patient data at risk. Attackers could disable medical devices or manipulate patient records, undermining the trust that patients and medical professionals rely on for care. This could also disrupt both the financial health of the institution and patient safety—a scenario that can never be taken lightly.
Security measures that once seemed essential—such as advanced threat detection systems, encryption protocols, and staff cybersecurity training—are increasingly viewed as luxuries rather than necessities. However, the cost of a breach is far higher than the cost of implementing robust cybersecurity measures upfront. For example, the average cost of a healthcare breach was $9.7 million in 2024—almost double the cross-industry average. These costs encompass everything from ransom payments to regulatory fines and reputational damage.
As government budgets tighten, many healthcare organizations find themselves at a crossroads. The pressure to maintain quality care while keeping costs down has led to cost-cutting measures, often at the expense of cybersecurity.
Investing in a Cost-Effective Cybersecurity Tech Stack
There are practical, cost-effective strategies that can significantly improve cybersecurity without draining already-stretched resources, but to implement these measures successfully, it requires a shift in mindset. Cybersecurity should not be treated as a discretionary IT cost but rather as a core investment in protecting patient safety, safeguarding sensitive health data, and ensuring the uninterrupted delivery of care.
Focus on scalable, high-impact technologies. Cloud-based security tools are a particularly compelling option for healthcare providers looking to reduce capital expenditures. These solutions eliminate the need for costly on-premises infrastructure, offer predictable operating costs, and scale seamlessly as organizations grow or as cyber risk evolves. Many modern cloud-native platforms also offer built-in compliance support, helping providers more easily meet HIPAA and other regulatory requirements.
Automation is another cost saver. Automated threat detection and incident response capabilities—such as AI-driven security information and event management (SIEM) systems, endpoint detection and response (EDR), or managed detection and response (MDR) services—can dramatically reduce the manual burden on lean security teams. These tools help detect abnormal behavior early, prevent lateral movement of attacks, and reduce the mean time to respond (MTTR), which can lower the potential cost of a breach. In an industry where every minute of downtime can impact patient care, automation can make a critical difference.
Building a Security Community
Beyond the tech stack focus to overcome resource constraints, it is also foundational to establish a culture of cybersecurity across all levels of the organization.
Healthcare staff, from doctors to administrative personnel, should be trained to recognize potential threats and adopt best practices for protecting patient information. Trustwave’s findings indicate that 45% of cyberattacks on the healthcare industry began with phishing, making regular training sessions and phishing simulation exercises imperative to build resilience against common attacks. By embedding security practices into all employees’ daily workflows, healthcare providers can mitigate risks without needing to invest heavily in additional resources.
Collaboration with third-party cybersecurity experts can also provide healthcare organizations with the support they need to stay ahead of the curve. Managed Security Service Providers (MSSPs) and cybersecurity vendors offer specialized expertise that can help healthcare institutions implement the right security measures and respond effectively to threats, without the need for a large in-house security team. Building a full-scale security community that includes in-house employees, third-party partners, and the insights of frontline security professionals is key to staying informed, aware, and prepared.
Proactive Security as a Long-Term Investment
As healthcare organizations grapple with rising cyber threats and shrinking budgets, one truth remains clear: proactive investment in cybersecurity is not just prudent—it’s essential. The financial and operational fallout of a breach can far outweigh the cost of prevention, as Trustwave’s research makes clear. Yet too often, cybersecurity is deprioritized in favor of more visible or immediate needs.
The path forward is not about spending more, but about spending smarter. Scalable, cost-effective solutions; a culture of security awareness; and access to third-party expertise can fortify defenses without compromising care.
About Kory Daniels
Kory Daniels is the Chief Information Security Officer at Trustwave, where he leads cybersecurity strategy and defense for the company and its clients. With over 15 years of experience spanning sales, consulting, and operations, Kory is recognized for his innovative approach to cyber resilience and leadership in the industry.
