Telehealth Vendor Risk Management: Security, Privacy, and Clinical Safety Considerations

Telehealth has transformed healthcare, but working with third-party vendors creates risks in three key areas: security, privacy, and clinical safety. These risks include cyberattacks, data breaches, regulatory violations, and patient care challenges. Managing these risks is critical to protecting patient data, ensuring compliance, and maintaining care quality.

Key Points:

• Security Risks: Cyberattacks like ransomware and phishing are common. In 2024, healthcare data breaches affected 70% of the U.S. population.
• Privacy Challenges: Telehealth increases exposure risks for patient data, requiring strict adherence to HIPAA and HITECH regulations.
• Clinical Safety Issues: Diagnostic errors, medication miscommunication, and technology failures can compromise care quality.
• Risk Management Solutions: Conduct regular risk assessments, enforce strong technical safeguards, and train staff to recognize threats. Use tools like Censinet RiskOps™ for vendor oversight.

Effective telehealth risk management combines proactive vendor evaluations, continuous monitoring, and compliance with U.S. regulations to safeguard patient care and data integrity.

Security Risks in Telehealth and Mitigation Methods

Telehealth vendors introduce serious security challenges that can leave healthcare organizations vulnerable to cyberattacks. Understanding these risks and addressing them proactively is critical to safeguarding patient data.

Common Security Threats in Telehealth

Telehealth platforms have become a prime target for cybercriminals, and the numbers paint a concerning picture. In 2024 alone, healthcare data breaches hit a record high, with 14 incidents exposing over 1 million healthcare records each. These breaches impacted nearly 70% of the U.S. population - 237,986,282 residents to be exact ^[2]. By 2025, the sector had faced 1,710 security incidents, with 1,542 confirmed data disclosures ^[2].

Ransomware attacks are among the most damaging threats. In 2024, groups like LockBit, CIOp, ALPHV, and BianLian targeted more than 460 U.S. healthcare organizations. One particularly severe attack disrupted a large hospital network, affecting over 500,000 patients. This incident caused delays in care, canceled appointments, ambulance diversions, and even took electronic health records offline. The financial fallout? An estimated $100 million in damages ^[2].

Phishing attacks also remain a significant risk, with the average cost of a breach reaching $9.77 million in 2024 ^[2]. These attacks often exploit telehealth platforms by tricking users into sharing sensitive credentials or downloading harmful software.

Medical device vulnerabilities create another entry point for attackers. Over half of the most commonly used connected medical devices are susceptible to cyberattacks ^[4]. Hackers can exploit these Internet of Medical Things (IoMT) devices to manipulate medication dosages, falsify vital signs, or gain unauthorized access to hospital networks.

Cloud misconfigurations are another frequent issue. In one instance, a major U.S. health insurance provider inadvertently exposed 4.7 million customer Protected Health Information (PHI) records over three years due to a misconfigured cloud storage bucket ^[2].

Finally, insider threats - whether due to negligence or malicious intent - continue to play a major role in data breaches and system disruptions ^[3][4].

Recognizing these risks is the first step toward implementing effective defenses.

How to Reduce Security Risks

Healthcare organizations can take several steps to minimize the risks posed by telehealth vendors.

Start with regular risk analyses using tools like the HIPAA Security Risk Assessment Tool. These evaluations should cover policies, technical safeguards, and staff training protocols.

Technical safeguards are equally critical. Implement end-to-end encryption for data in transit and secure encryption for data at rest. Strengthen access controls with multi-factor authentication (MFA), robust password policies, and role-based access control (RBAC) to limit exposure to electronic Protected Health Information (ePHI).

Device security is another key area. Ensure that all patient and provider devices are password-protected, encrypted, and updated regularly. Remote device management solutions can help maintain consistent security standards across endpoints.

Audit controls are essential for monitoring activity within systems containing ePHI. Regularly review access logs to detect unusual behavior or unauthorized access attempts.

When working with vendors, conduct thorough security assessments. Evaluate their incident response plans, data backup capabilities, and disaster recovery mechanisms to ensure they align with security best practices.

Lastly, invest in ongoing security training for staff. Educating employees on recognizing phishing emails, malware, and other threats can significantly enhance an organization’s overall security posture ^[6].

"Telemedicine uses technology, and it can place a practitioner or an organization in a very vulnerable position for malware attacks and hacks. So keeping private health information protected is paramount."
– Judy Klein, Senior Risk Solutions Consultant, MedPro Group ^[7]

By combining these measures with careful vendor evaluations, healthcare organizations can better secure their telehealth operations.

Meeting U.S. Regulatory Requirements

Legal compliance is another cornerstone of managing telehealth security risks. The HIPAA Security Rule sets nationwide standards for protecting electronic health information. Healthcare organizations must ensure their telehealth vendors comply with these requirements by establishing comprehensive Business Associate Agreements (BAAs).

Telehealth vendors who handle ePHI must sign BAAs that mandate adherence to the Security Rule. These agreements should also require subcontractors to follow the same standards. Failing to monitor vendor compliance could result in HIPAA violations.

The HIPAA Security Rule calls for safeguards that go beyond basic encryption, including auditing capabilities, data backup systems, and disaster recovery plans. All communications must be securely tracked, logged, and stored to ensure business continuity ^[6].

"The Security Rule was designed to be flexible, scalable, and technology neutral, enabling a regulated entity to implement policies, procedures, and technologies that are appropriate for the entity's particular size, organizational structure, and risks to ePHI."
– HHS.gov ^[5]

The HITECH Act further strengthens HIPAA protections by requiring organizations to establish breach notification protocols. This includes procedures for detecting, investigating, and reporting security incidents involving vendor systems within specified timeframes.

For additional support, healthcare organizations can consult external cybersecurity experts or cyber insurance providers. These professionals can conduct independent risk assessments to identify vulnerabilities and address compliance gaps ^[7].

Privacy Management for Telehealth Vendors

Protecting patient privacy in telehealth partnerships comes with its own set of challenges that require careful attention and proactive strategies.

Patient Data Privacy Challenges

Virtual healthcare brings unique privacy concerns to the forefront. For starters, patients may not always have access to a secure, private space for their appointments, which increases the risk of sensitive information being overheard. Additionally, as data travels across potentially unsecured networks, the chances of exposure grow. Verifying a patient’s identity also becomes more complicated in a virtual setting. Unlike in-person visits, where physical IDs can be checked, telehealth relies on methods like multi-factor authentication or callback verification to ensure the person on the call is who they claim to be.

Home environments can also inadvertently compromise privacy, as others in the household might overhear sensitive conversations. On top of that, digital literacy remains an issue, particularly in rural areas, where only 30% of adults have access to the devices and tools needed for telehealth ^[8]. With telehealth usage skyrocketing - from 57.65 million online consultations in 2019 to an anticipated 116.73 million in 2024 ^[8] - addressing these vulnerabilities is more important than ever.

U.S. Privacy Laws and Requirements

Navigating the regulatory landscape is a critical aspect of managing telehealth privacy. At the federal level, HIPAA’s Privacy Rule serves as the backbone of patient data protection, while its Security Rule governs the handling of electronic protected health information (ePHI), which is central to telehealth operations.

The HITECH Act adds another layer of accountability by extending HIPAA’s privacy requirements to business associates, including telehealth vendors. It also imposes steep financial penalties - up to $1.5 million per violation, adjusted annually for inflation ^[9]. A 2021 amendment to HITECH, often called the HIPAA Safe Harbor Law, allows organizations to demonstrate adherence to "recognized security practices" for at least 12 months before a breach. This can help mitigate fines and penalties ^[9].

State-level laws often go beyond federal regulations, adding another layer of complexity for providers operating across multiple states. For example, 42 CFR Part 2 mandates patient consent for sharing substance use disorder treatment records, while the Health Breach Notification Rule requires certain entities to inform patients if their health records are compromised ^[10]. Together, these laws shape the privacy measures that telehealth providers must implement.

Methods for Maintaining Privacy and Compliance

To safeguard patient privacy and meet regulatory requirements, healthcare organizations should adopt these strategies:

• Risk Assessments: Regularly evaluate technical safeguards, environmental factors, staff training, and patient education to identify and address privacy vulnerabilities.
• Environmental Privacy Controls: Guide patients on how to find private spaces for their sessions and secure informed consent when full privacy isn’t possible. For highly sensitive discussions, alternative communication methods like secure email or chat may be more appropriate.
• Patient Identity Verification and Technology Safeguards: Use strong identity verification measures, such as multi-factor authentication and knowledge-based checks. Protect patient data with encryption, secure Wi-Fi connections, and regular software updates. Educate patients on securing their devices and avoiding public networks.
• Staff Training and Patient Education: Train staff on telehealth-specific privacy challenges, including remote identity verification and secure documentation. Provide patients with clear, accessible resources on creating private environments and recognizing potential threats.
• Continuous Monitoring with Censinet RiskOps™: Tools like Censinet RiskOps™ enable healthcare providers to manage vendor privacy risks effectively. This platform supports streamlined risk assessments, continuous monitoring of vendor practices, and compliance with HIPAA, HITECH, and state-specific regulations.
• Policy Integration and Documentation: Ensure telehealth-specific privacy protocols are incorporated into existing policies, such as the Notice of Privacy Practices. Include telehealth systems in annual security risk assessments, and establish clear procedures for access log reviews and incident response to address emerging issues quickly.

Clinical Safety Risks and Quality Control in Telehealth

Telehealth has broadened access to healthcare, but it also brings its own set of safety challenges. Recognizing these risks and putting effective quality control measures in place is critical to ensuring patient safety in virtual care settings.

How to Identify Clinical Safety Risks

• Diagnostic Errors
  Virtual visits can sometimes lead to diagnostic mistakes due to limited physical exams, insufficient history-taking, or over-reliance on patient-reported vital signs ^[11].
• Medication Safety Issues
  Miscommunication during virtual consultations can complicate medication reconciliation, increasing the chance of adverse drug events. This risk is especially high for patients with low health literacy or those who don’t receive clear after-visit instructions. Including pharmacists in the reconciliation process can help minimize these issues ^[11].
• Care Coordination and Referral Follow-through
  Lack of clear guidance for in-person referrals can discourage patients from following through, disrupting care continuity. Clear and actionable referral instructions are essential to improving outcomes ^[12].
• Technology Failures and Health Equity Challenges
  Technical problems - like poor audio or video quality and unreliable internet connections - can lead to incorrect clinical decisions, particularly in urgent cases. Additionally, vulnerable groups, such as older adults or racial and ethnic minorities, may face barriers like limited access to technology or private spaces for virtual visits. The Federal Communications Commission highlights that over 22% of rural Americans lack adequate broadband access, compared to just 1.5% in urban areas ^[1].

Tackling these risks requires robust credentialing processes and well-defined clinical protocols.

Provider Credentialing and Protocol Requirements

Every telehealth provider must hold valid, up-to-date licenses. Tools like the Interstate Medical Licensure Compact can simplify this process, but providers often need licensure in every state where their patients reside. Healthcare organizations must also ensure that providers use HIPAA-compliant technology and receive thorough technical training.

Standardized clinical protocols should guide the entire telehealth process - from initial triage to follow-up care. These protocols must clearly define when telehealth is appropriate and when an in-person visit is necessary. As Richard Cahill, JD, Vice President and Associate General Counsel at The Doctors Company, explains:

"Whether patient care is delivered in person or through telehealth, the required levels of skill and expertise and the standard of care are the same." ^[14]

Emergency response plans are another critical component, ensuring providers can handle situations requiring immediate in-person care. These measures not only protect patients but also align telehealth practices with broader risk management goals.

Quality Control and Incident Reporting

Beyond credentialing and protocols, ongoing quality control is key to maintaining safety in telehealth. Continuous quality improvement processes should track patient outcomes, monitor key performance indicators, and address adverse events promptly ^[13]. Documenting details like the technology used, patient and provider locations, and informed consent helps ensure both quality and legal compliance.

Patient feedback, gathered through post-visit surveys, can provide actionable insights to refine practices and improve care. Monitoring technical metrics - such as connection stability and call drop rates - can help identify and resolve communication issues early.

Incident reporting systems are vital for capturing and analyzing telehealth-specific safety events. Standardized workflows and anonymous reporting options encourage staff to report issues without fear of repercussions. Regular reviews of clinical protocols ensure that safety measures evolve alongside new regulations and industry practices.

Tools like Censinet RiskOps™ can simplify these processes by automating monitoring, offering standardized assessment frameworks, and centralizing incident tracking. This tech-driven approach not only eases the administrative load on clinical staff but also ties risk management directly to the operational security of telehealth services.

sbb-itb-535baee

Telehealth Vendor Risk Management Methods

Managing vendor risks in telehealth requires a well-organized approach that balances thorough evaluation with practical execution. Healthcare organizations need systems that can adapt to growing vendor networks while upholding strict standards for patient safety and compliance. This ensures telehealth operations remain secure, private, and clinically reliable.

Step-by-Step Vendor Risk Management Process

Initial Risk Assessment and Vendor Discovery involves identifying telehealth vendors and assessing their associated risks. This step includes evaluating how each vendor impacts clinical operations, handles patient data, and supports business continuity. It's essential to document the types of protected health information (PHI) vendors access and the clinical functions they provide.

Risk Tiering and Prioritization organizes vendors based on their potential impact. Vendors handling sensitive patient data or critical clinical functions are given the highest priority. These high-risk vendors typically require annual reassessments, while lower-risk ones may only need reviews every two to three years ^[15].

Ongoing Monitoring and Portfolio Management ensures that vendor risk assessments stay up-to-date. This process includes tracking changes in vendor security practices, monitoring for breaches or incidents, and maintaining a long-term risk profile for all third-party vendors ^[15].

Periodic Reassessment and Risk Updates complete the process. These reassessments focus on identifying changes since the last evaluation, saving time while ensuring any new risks are addressed ^[15].

Using Censinet RiskOps™ for Risk Management

Many healthcare organizations turn to automation tools like Censinet RiskOps™ to streamline these processes. This platform redefines vendor risk management with automation and collaborative intelligence. Its Digital Risk Catalog™ hosts details on over 50,000 vendors and products - many pre-assessed and risk-scored - allowing organizations to leverage existing evaluations instead of starting from scratch ^[15][16].

Key features include:

• Automated Risk Scoring, which delivers real-time updates as vendor data changes, eliminating manual effort and ensuring accuracy.
• 1-Click Sharing, enabling vendors to share completed questionnaires and evidence with multiple customers instantly ^[15].
• Workflow Automation, which ensures comprehensive risk coverage across the vendor lifecycle, addressing the challenge of managing large vendor portfolios with limited resources ^[15].

Terry Grogan, CISO at Tower Health, highlighted the platform's impact:

"Censinet RiskOps allowed 3 FTEs to go back to their real jobs! Now we do a lot more risk assessments with only 2 FTEs required." ^[16]

Additional benefits include Continuous Risk Visibility, where vendors keep their risk data current via the Cybersecurity Data Room™, and Portfolio Breach and Ransomware Alerts, which provide immediate notifications of security incidents within the vendor network ^[15].

James Case, VP & CISO at Baptist Health, noted:

"Not only did we get rid of spreadsheets, but we have that larger community [of hospitals] to partner and work with." ^[16]

Combining Automation with Human Oversight

While automation improves efficiency, human expertise remains critical for nuanced risk evaluation. A balanced approach ensures automated processes are complemented by human judgment, especially in areas requiring detailed analysis and specialized knowledge ^[18].

• Trust but Verify Approach: Automated alerts should be validated by experts who cross-check vendor claims with independent evidence, particularly for sensitive data ^[18]. This is especially important in telehealth, where clinical safety must be carefully assessed.
• Governance Structures and Review Processes: Organizations should establish clear guidelines for when automated findings need human review and define escalation paths for complex risks. Training should focus on both the technical aspects of using automation tools and the critical thinking skills needed for oversight ^[18].

Matt Christensen, Sr. Director GRC at Intermountain Health, emphasized:

"Healthcare is the most complex industry... You can't just take a tool and apply it to healthcare if it wasn't built specifically for healthcare." ^[16]

• Continuous Monitoring and Feedback Loops: Regular evaluations of automated systems help identify where human input is most valuable. Feedback from experts ensures the technology stays accurate and relevant over time ^[17].

This hybrid model allows healthcare organizations to scale their vendor risk management programs while maintaining the human oversight necessary for patient safety and compliance. The result is a strong and effective risk management strategy tailored to the complexities of telehealth.

Conclusion: Building Secure Telehealth Operations

Managing telehealth vendor risks effectively means tackling security vulnerabilities, ensuring privacy compliance, and prioritizing clinical safety before these challenges turn into costly problems.

At the heart of secure telehealth operations lies thorough vendor evaluation during onboarding. Vendors must prove their adherence to HIPAA regulations and other relevant standards, along with presenting clear incident response plans ^[19].

But it doesn’t stop there. Continuous monitoring plays a critical role in reinforcing these initial measures. With cyberattacks on telehealth services rising sharply over the past two years, regular audits and automated monitoring have become essential ^[19]. These ongoing efforts work hand-in-hand with the vendor assessment strategies mentioned earlier.

Platforms like Censinet RiskOps™ simplify these complex processes. With a Digital Risk Catalog™ featuring over 50,000 pre-assessed vendors and products, organizations can save time by leveraging existing evaluations instead of starting from scratch. The platform’s automated risk scoring updates in real time as vendor data changes, and its delta-based reassessments can cut completion time to less than a day on average ^[15].

However, automation alone isn’t enough. Successful telehealth operations require a blend of technology and expert analysis. By combining automated tools with human oversight, healthcare teams can scale their risk management efforts without compromising the detailed scrutiny necessary for patient safety ^[19].

Another key component is ongoing staff training. Regular training helps minimize mistakes, reinforces compliance, and ensures teams are prepared to respond effectively to incidents ^[19]. Additionally, securing comprehensive insurance coverage - like cyber liability and errors and omissions policies - offers financial protection and complements technical measures, creating a robust risk management strategy ^[19].

FAQs

What steps can healthcare organizations take to ensure their telehealth vendors comply with HIPAA and HITECH regulations?

Healthcare organizations can maintain compliance by requiring telehealth vendors to sign Business Associate Agreements (BAAs). These agreements should clearly define the vendor's responsibilities under HIPAA, including the protection of electronic protected health information (ePHI) through encryption and secure transmission methods. Regularly revisiting and updating these agreements helps ensure vendors remain accountable.

Organizations should also confirm that vendors adhere to HITECH standards for data security and breach notifications. This can be done through regular audits, comprehensive risk assessments, and continuous monitoring. Keeping a close eye on vendor practices helps reduce potential risks and ensures alignment with privacy and security regulations.

How can healthcare organizations reduce the risk of cyberattacks on telehealth platforms?

To reduce the chances of cyberattacks targeting telehealth platforms, healthcare organizations need to prioritize robust cybersecurity measures. Start by ensuring all internet connections are encrypted and replacing default passwords with strong, unique ones. It's also crucial to provide education for both staff and patients on spotting phishing scams and securely managing sensitive information.

Regular risk assessments and audits are key to spotting potential weak points before they can be exploited. Adding multi-factor authentication (MFA) significantly strengthens defenses against unauthorized access. Additionally, providing ongoing cybersecurity training for staff keeps everyone informed about emerging threats and effective protection strategies. Together, these actions create a more secure telehealth experience for everyone involved.

What steps can telehealth providers take to address clinical safety issues like diagnostic errors and medication mistakes in virtual care?

Telehealth providers can improve clinical safety by using structured communication protocols and checklists during remote assessments and care transitions. These tools ensure clear, accurate information exchange, reducing the chances of diagnostic errors and medication-related issues.

In addition, leveraging real-time decision support tools and keeping thorough records of communication can help prevent misunderstandings and lead to better patient outcomes. Focusing on these practices creates a safer, more dependable virtual care experience.

Related Blog Posts

• Building Vendor Risk Frameworks for Healthcare IT
• 5 Challenges in Healthcare Cyber Risk Management
• Healthcare Vendor Risk Management Framework: Templates, Tools, and Best Practices
• EHR Vendor Risk Assessment: Protecting Clinical Data and Ensuring System Reliability