One of the most promising ways managed service providers (MSPs) assist healthcare organizations is through facilitating advanced identity and data management frameworks grounded in the concept of self-sovereign identity (SSI). According to a Sensors study, SSI is “an identity model centered on the user” in which “the user maintains and controls their data” and “sends it directly to the service provider, bypassing third-party intermediaries.”
Unlike centralized systems, where patient and provider identities are controlled by third-party authorities, introducing risks such as privacy breaches and single points of failure, the SSI model “reduces identity providers’ involvement in the identification, authentication, and authorization, thereby increasing user privacy.”
MSPs provide the sophisticated technical environments to deploy and operate these decentralized systems using cryptographic foundations and blockchain technologies. The technology enables US healthcare organizations to ensure that patient consent, data access, and data storage strictly adhere to sovereignty requirements.
MSPs also bring technical expertise to address the specific challenges of cross-border data flows increasingly common with cloud-based healthcare solutions and remote patient monitoring. Their role includes making sure that all cloud data storage aligns with jurisdictional data residency rules, employing encryption and tokenization techniques that keep information secure while it traverses networks.
A digital identity is a collection of electronic attributes and credentials tied to an entity that enables recognition, authentication, and authorization in digital interactions. As the study ‘Decentralized Identity Management for E-Health Applications: State-of-the-Art and Guidance for Future Work’ stresses, “The increasing use of various online services requires an efficient digital identity management (DIM) approach,” yet the “original Internet protocols were not designed with built-in identity management, which creates challenges related to privacy, security, and usability.”
These take diverse forms to represent various stakeholders, including patients, healthcare providers, medical devices, and administrative personnel. SSI systems allow users to store verifiable credentials, such as medical licenses, patient health information, or device certifications, in secure digital wallets, which they can control and share selectively. For example, a patient can prove their vaccination status or a provider can prove their professional credentials without exposing unnecessary personal information.
There is a tension between the free flow of sensitive healthcare data needed for medical treatment, research, and innovation, and the often fragmented, jurisdictional privacy regulations that govern how this data may be shared beyond borders. HIPAA itself primarily controls the processing of health data within U.S. borders and does not provide a comprehensive framework for cross-border data privacy. This creates an inherent regulatory gap when data moves internationally.
As one Blockchain in Healthcare Today study notes, “The increasing everyday usage of various online services requires an efficient digital identity management (DIM) approach,” yet “the original Internet protocols were not designed with built-in identity management, which creates challenges related to privacy, security, and usability.”
When data is transmitted internationally, it often passes through multiple systems, networks, and potentially less secure environments, each with its own security protocols and risk factors. This chain of custody can be difficult to monitor and govern comprehensively. Certain foreign jurisdictions may impose data residency requirements, mandating that health data remain physically within specific countries, or that local authorities might have legal rights to access data stored within their borders, sometimes without the consent or knowledge of the U.S.-based data owner.
MSPs design and manage data infrastructure that respects data residency requirements. The feat is achieved through regional cloud data centers and edge computing, which allows MSPs to ensure that health data is physically stored and processed in designated jurisdictions. Patient data, therefore, never strays beyond geographic borders where its security and governance can be tightly controlled.
As the study ‘Data, Big Tech, and the New Concept of Sovereignty’ notes, in a world where “Big Tech has evolved into the new data sovereigns that governments must accept in the data era,” MSPs help healthcare organizations reduce dependence on these digital empires by offering localized control and compliance-oriented alternatives.
MSPs also bring advanced security capabilities, from encryption of data at rest and in transit to enforcing strict access controls. Many MSPs operate around-the-clock Security Operations Centers (SOCs), where dedicated teams monitor network activity for potential threats and breaches. This continuous vigilance allows healthcare organizations to detect and neutralize attacks before patient data is compromised.
This is necessary because Big Tech firms, “By virtue of their technical advantages, have not only deconstructed the traditional concept of sovereignty, but also formed a complex symbiotic relationship” with governments. As Big Tech “dominates computing power, algorithms, and data more strongly,” healthcare organizations must rely on MSPs to ensure that their security posture remains independent of external monopolistic control.
Realizing the full benefits of MSP partnerships requires careful due diligence. Healthcare organizations must meticulously evaluate MSP capabilities so that it provides for clear contractual commitments regarding data handling, security measures, and incident management. MSPs that combine healthcare domain knowledge with technological expertise are best equipped to navigate the challenges of data compliance.
MSPs assist with identity management by deploying advanced Identity and Access Management (IAM) solutions. IAM encompasses frameworks that automatically create, modify, and deactivate digital identities in an organization’s systems based on user roles and lifecycle changes. A Therapeutic Advances in Vaccines and Immunotherapy study notes, “Deployment of identity access and management (IAM) and single sign-on (SSO) can accelerate operationalization of a vaccine delivery center when urgently needed in a crisis.”
They facilitate the rapid onboarding and secure access provisioning for hundreds of clinical staff during vaccination campaigns, reducing manual inefficiencies and speeding up healthcare delivery during a public health crisis. For example, “Secure access enabled by IAM technology facilitated a rapid expansion (25 minutes) where 500 new vaccine delivery personnel were identified and authenticated during a period of high pandemic incidence.” By automating role-based access controls, MSPs ensure that users receive permissions strictly aligned with their clinical or administrative roles.
It allows for strong auditability and compliance reporting around identity management. Comprehensive logging of identity provisioning, authentication attempts, permission changes, and access events provides transparency and forensic capability in case of incidents or regulatory audits. MSPs equip healthcare organizations with dashboards and analytics tools that visualize identity-related metrics.
See also: HIPAA Compliant Email: The Definitive Guide (2025 Update)
Single Sign-On (SSO) is an identity management technology that allows users to access multiple applications and systems with one set of login credentials, instead of entering usernames and passwords repeatedly.
In hospitals, clinicians often log into 8–10 or more applications daily. SSO reduces repetitive logins by enabling one secure login per shift and using a proximity badge or other quick authentication methods for the rest of the shift, freeing up more time for patient care.
Yes. SSO enhances security by centralizing authentication and allowing IT teams to enforce strong access controls, automatically lock unattended workstations, and track login activity for auditing.