How MSSPs can help covered entities meet HIPAA and HITECH requirements

The healthcare industry is one of the most targeted sectors for cyberattacks, with data breaches costing organizations an average of $4.4 million per incident in 2025, according to IBM’s Cost of a Data Breach Report. These attacks threaten patient privacy and carry severe regulatory consequences under the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH). Both laws mandate that covered entities safeguard protected health information (PHI) with rigorous administrative, technical, and physical safeguards.

However, many healthcare providers face staffing shortages, underfunded IT departments, and increasingly complex threat landscapes. A TechTarget article, Understaffed, underfunded: Health IT security for small, rural providers, notes that “some organizations, such as rural and critical access hospitals, small physician practices and federally qualified health centers, the resources needed to strengthen cyber defenses are few and far between. They often lack the funding, staffing and support to defend against sophisticated cyberthreats consistently.” This is where Managed Security Service Providers (MSSPs) become indispensable. MSSPs deliver expertise, technology, and round-the-clock monitoring, helping healthcare organizations achieve and maintain compliance while reducing their security risk. 

How MSSPs can help covered entities

Conducting risk assessments and gap analysis

• Regulatory requirement: According to the U.S. Department of Health and Human Services (HHS), “The Administrative Safeguards provisions in the Security Rule require a regulated entity to perform an accurate and thorough assessment of the potential risks and vulnerabilities to the confidentiality, integrity, and availability of ePHI held by the regulated entity as part of their security management processes… Based on the potential risks and vulnerabilities the regulated entity identifies, it then determines which security measures are reasonable and appropriate to implement for managing that risk.”
• MSSP role: MSSPs specialize in comprehensive risk assessments that standardize existing practices against HIPAA and HITECH standards. They:
  • Identify vulnerabilities across networks, devices, and applications.
  • Conduct penetration testing and vulnerability scans.
  • Provide detailed remediation plans with prioritized recommendations.

For example, in 2022, Oklahoma State University Center for Health Sciences (OSU-CHS) agreed to a $875,000 HIPAA settlement after the Office for Civil Rights (OCR) found that the center failed to conduct a proper risk analysis following a breach that exposed the ePHI of nearly 280,000 individuals. OCR noted that OSU-CHS had not implemented sufficient policies and procedures to evaluate potential risks and vulnerabilities to ePHI. An MSSP-led assessment could have identified those weaknesses earlier, potentially preventing the breach.

Implementing technical safeguards

• Regulatory requirement: The HIPAA Security Rule requires specific technical safeguards to ensure the confidentiality, integrity, and availability of PHI. 
• MSSP role: MSSPs can design and implement layered security architectures that meet these requirements:
  • Encryption: Ensuring PHI is encrypted both in transit (e.g., secure email) and at rest (e.g., encrypted databases).
  • Access controls: Deploying role-based access, identity and access management (IAM), and multifactor authentication.
  • Audit controls: Enabling centralized logging and SIEM (Security Information and Event Management) systems to monitor data access and modifications.
  • Integrity Controls: Using checksums and monitoring to detect unauthorized alterations.

These measures support compliance with the HIPAA Security Rule and make it difficult to compromise PHI in the event of an attack.

Continuous monitoring and incident response

• Regulatory requirement: HIPAA’s Security Rule mandates ongoing protection and timely responses to security incidents.
• MSSP role: MSSPs may provide 24/7 Security Operations Centers (SOCs) with advanced monitoring capabilities, including AI-driven anomaly detection and threat intelligence integration. Benefits include:
  • Early detection of ransomware and phishing attempts.
  • Rapid containment and remediation when incidents occur.
  • Guidance on HIPAA breach notification requirements, which must be followed if PHI is exposed.

A case in point is the 2019 ransomware attack on Alabama’s DCH Health System, which forced the closure of multiple hospitals. MSSPs with incident response expertise can help covered entities avoid such operational disruptions and meet strict reporting deadlines.

Compliance reporting and documentation

• Regulatory requirement: Covered entities must provide proof of compliance during audits or OCR (Office for Civil Rights) investigations.
• MSSP role: MSSPs create detailed compliance reports and maintain audit-ready documentation, including:
  • Access logs and security incident reports.
  • Evidence of encryption, patching, and system updates.
  • Documentation of security policies and procedures.

This level of reporting helps organizations demonstrate due diligence. In OCR enforcement cases, lack of proper documentation has been a major factor in settlements, with fines reaching millions of dollars.

Read also: Guidelines for HIPAA compliant documentation and record retention

Employee training and awareness

• Regulatory requirement: HIPAA requires that “a regulated entity must train all workforce members on its security policies and procedures.”
• MSSP role: MSSPs can offer security awareness training programs that include:
  • Phishing simulations to test employee vigilance.
  • Training modules on password hygiene, secure communication, and handling PHI.
  • Ongoing refresher courses to adapt to new threats.

Given that 95% of healthcare breaches involve human error, employee training is one of the most cost-effective safeguards MSSPs provide.

Learn more: What does cybersecurity training look like in 2025?

Business associate agreement (BAA) support

• Regulatory requirement: According to the HHS, “The HIPAA Rules generally require that covered entities and business associates enter into contracts with their business associates to ensure that the business associates will appropriately safeguard protected health information.”
• MSSP role: Reputable MSSPs must sign a BAA that clearly defines responsibilities and liabilities regarding PHI protection. A strong BAA ensures that:
  • Both the MSSP and covered entity are accountable under HIPAA.
  • Security obligations (encryption, breach reporting, audits) are contractually enforced.
  • Legal exposure is reduced in the event of a breach.

Failure to establish BAAs has led to hefty OCR penalties. For example, the HHS reached a $1.55 million settlement with North Memorial Health Care in 2016 after it failed to secure a proper BAA with a vendor.

Related: Business associate agreement provisions

Keeping up with evolving regulations and threats

• Regulatory requirement: Covered entities must remain compliant as laws and threats evolve.
• MSSP role: MSSPs actively track:
  • Updates to HIPAA/HITECH rules and OCR guidance.
  • Emerging threats such as AI-driven phishing or supply chain attacks.
  • Best practices from frameworks such as the NIST Cybersecurity Framework and HITRUST.

This ensures that healthcare organizations maintain compliance even as both regulations and cyberthreats change.

Why MSSPs are a strategic investment for healthcare 

Beyond regulatory compliance, MSSPs deliver strategic value to healthcare organizations by:

• Protecting reputation: Patients are more likely to trust providers who demonstrate robust data protection.
• Ensuring business continuity: Rapid response to threats minimizes downtime and preserves patient care.
• Scaling with growth: MSSPs adapt as organizations expand, ensuring new systems and partners remain compliant.

See also: HIPAA Compliant Email: The Definitive Guide (2025 Update)

FAQS

Do MSSPs replace the need for in-house IT staff?

No. MSSPs can instead complement existing IT teams. While MSSPs handle specialized security and compliance functions, internal staff can still manage core IT operations and clinical systems.

Learn more: How MSSPs can help your healthcare IT

Are MSSPs required to sign a business associate agreement (BAA)?

Yes. Under HIPAA, MSSPs are considered business associates if they access or manage PHI. A signed BAA ensures both the covered entity and MSSP are accountable for safeguarding patient data.

What happens if a healthcare provider does not use an MSSP or strong cybersecurity measures?

Failure to meet HIPAA’s requirements can result in costly fines, breach notifications, loss of patient trust, and disruption of healthcare services.

Can MSSPs provide services beyond HIPAA compliance?

Yes, MSSPs also help healthcare organizations meet additional frameworks and certifications, such as HITRUST, PCI DSS (for payment data), and the NIST Cybersecurity Framework. This strengthens overall compliance and security posture.