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Black Book’s Annual Cybersecurity Survey Reveals Healthcare Enterprises Are Not Maturing Fast Enough, Processes Continue Underfunded and Understaffed

The industry is deluged with new applications, challenging systems, new devices and innovative approaches to handling and sharing data.

PRESS RELEASE  MAY 14, 2018 08:00 EDT

TAMPA, Fla., May 14, 2018 (Newswire.com) – Black Book Market Research LLC surveyed over 2,464 security professionals from 680 provider organizations to identify gaps, vulnerabilities and deficiencies that persist in keeping hospitals and physicians proverbial sitting ducks for data breaches and cyber attacks.  Ninety-six percent of IT professionals agreed with the sentiments that data attackers are outpacing their medical enterprises, holding providers at a disadvantage in responding to vulnerabilities.

A fragmented mix of 410 vendors offering data security services, core products and solutions, software, consulting and outsourcing received user feedback including large IT companies, mid and small security vendors and start-ups in the polling period Q3 2017 to Q2 2018.

Over 90 percent of healthcare organizations have experienced a data breach since Q3 2016 and nearly 50 percent have had more than five data breaches during the same timeframe.  Not only has the number of attacks increased, more than 180 million records have been stolen since 2015, affecting about one in every 12 healthcare consumers.

The dramatic rise in successful attacks by both criminal and nation-state-backed hackers illustrates how attractive and vulnerable these healthcare enterprises are to exploitation. Despite these wake-up calls, the provider sector remains exceedingly susceptible to ongoing breaches.

Budget constraints have encumbered the practice of replacing legacy software and devices, leaving enterprises more susceptible to an attack. “It is becoming increasingly difficult for hospitals to find the dollars to invest in an area that does not produce revenue,” said Doug Brown, founder of Black Book. According to 88 percent of hospital representatives surveyed, IT security budgets have remained level since 2016. As a percentage of IT organizational budgets, cybersecurity has decreased to about three percent of the total annual IT spend.

Despite the lack of earmarked funds by U.S. buyers, Black Book projects the global healthcare cybersecurity spend to exceed $65 billion cumulatively over the next five years.

A third of hospital executives that purchased cybersecurity solutions between 2016 and 2018 report they did so blindly without much vision or discernment.  Ninety-two percent of the data security product or service decisions since 2016 were made at the C level and failed to include any users or affected department managers in the cybersecurity purchasing decision. Only four percent of organizations had a steering committee to evaluate the impact of the cybersecurity investment.

“The dilemma with cybersecurity budgeting and forecasting is the lack of reliable historical data,” said Brown. “Cybersecurity is a newer line item for hospitals and physician enterprises and budgets have not evolved to cover the true scope of human capital and technology requirements yet.”

Last year’s Black Book cybersecurity survey revealed 84 percent of hospitals were operating without a dedicated security executive. As a solution to unsuccessfully recruiting a qualified healthcare chief information security officer, 21 percent of organizations opted for security outsourcing to partners and consultants or selected security-as-a-service options as a stop-gap measure.

That shortage of healthcare cybersecurity professionals is forcing a rush to acquire services and outsourcing at a pace five times more than cybersecurity products and software solutions. Cybersecurity companies are responding to the labor crunch by offering healthcare providers and hospitals with a growing portfolio of services.

“The key place to start when choosing a cybersecurity vendor is to understand your threat landscape, understanding the type of services vendors offer and comparing that to your organization’s risk framework to select your best-suited vendor,” said Brown. “Healthcare organizations are also more prone to attacks than other industries because they persist at managing through breaches reactively.”

Fifty-seven percent of IT management respondents report their operations are not aware of the full variety of cybersecurity solution sets that exist, particularly mobile security environments, intrusion detection, attack prevention, forensics and testing.

Fifty-eight percent of hospitals did not select their current security vendor in advance of a cybersecurity incident.

Thirty-two percent of healthcare organizations did not scan for vulnerabilities before an attack.

“Providers are at a severe disadvantage when they are forced to hastily retain a cybersecurity firm in the midst of an ongoing incident as the ability to conduct the necessary due diligence is especially limited,” said Brown.

Sixteen percent of healthcare organizations reported they felt intimidated by a vendor to retain services when the vendor identified a vulnerability or security flaw. “While the intrinsic nature of cybersecurity radiates pressures and urgency, hospitals shouldn’t let this dictate the vendor selection process,” said Brown.

Sixty percent of healthcare enterprises have not formally identified specific security objectives and requirements in a strategic and tactical plan. Without a clear set of security goals, providers are operating in the dark and it’s impossible to measure results.

Eighty-three percent of healthcare organization have not had a cybersecurity drill with an incident response process, despite the skyrocketing cases of data breaches in the healthcare industry.

Only 12 percent of hospitals and nine percent of physician organizations believe that a Q2 2019 assessment of their cybersecurity will show improvement. Twenty-three percent of provider organizations believe their cybersecurity position will worsen, as compared to three percent in other industries.

In 2018, 24 percent of providers still do not carry out measurable assessments of their cybersecurity status. Of those that did, seven percent used an objective third-party service to benchmark their cybersecurity status, six percent used an objective software solution to benchmark their cybersecurity status and 78 percent self-assessed with their own criteria.

Twenty-nine percent of respondents currently report they do not have an adequate solution to instantly detect and respond to an organizational attack.

Seventy-four percent of surveyed CIOs did not evaluate the total cost of ownership (TCO) before making a commitment to sign their current cybersecurity solution or service contract. Eighty-nine percent reported they bought their cybersecurity solution to be compliant, not necessarily to reduce risk when the IT decision was made.

Healthcare organizations are hyper-focused on patient care and reimbursement. “Cybersecurity risks are not on the forefront of executives’ minds,” said Brown. “Medical and financial leaders also wield more influence over organizational budgets making it difficult for IT management to implement needed cybersecurity practices despite the existing environment.”

BLACK BOOK ANNOUNCE THE 2018 TOP CYBERSECURITY SERVICES & SOLUTIONS VENDORS

Black Book Market Research LLC conducts polls and surveys with healthcare executives and front-line users about their current technology and services partners and awards top-performing vendors based on performance based on 18 qualitative indicators of client experience and solution/service satisfaction and three indicators of customer loyalty. Black Book surveyed users of 18 categories of cybersecurity vendors, consultants and advisors which produced the 2018 rankings of No. 1 performing suppliers.

AUTHORIZATION & AUTHENTICATION SOLUTIONS – FIREEYE

Other Top Authorization & Authentication Solution Vendors include: SAILPOINT, AVATIER, SECUREAUTH, AUTH0, OPTIMAL IDM, CROSSMATCH & IMPRIVATA.

BLOCKCHAIN SOLUTIONS – HASHED HEALTH

Other Top Blockchain Solution Vendors include: POKITDOK, IBM BLOCKCHAIN, HEALTHCOMBIX, MEDICAL CHAIN, HEALTH LINKAGES, GEM & BLOCK MD.

COMPLIANCE & RISK MANAGEMENT SOLUTION – CLEARWATER COMPLIANCE

Other Top Compliance & Risk Management Solution Vendors include: EY, DELOITTE, SERA-BRYNN, KPMG, COALFIRE, CYNERGISTEK & BAE SYSTEMS.

CYBERSECURITY ADVISORS & CONSULTANTS – LEIDOS

Other Top Compliance & Risk Management Solution Vendors include: KPMG, EY, SECURE DIGITAL SOLUTIONS, CYNERGISTEK, IBM, ATOS & IMPACT ADVISORS.

CYBERSECURITY TRAINING & EDUCATION – KNOWBE4

Other Top Cybersecurity Training Solution Vendors include: INSPIRED ELEARNING, DIGITAL DEFENSE, THE SANS INSTITUTE, (ISC)2, OPTIV, VANGUARD & CIRCADENCE.

DDOS ATTACK PROTECTION – IMPERVA

Other Top Cybersecurity DDOS Attack Protection Vendors include: CLOUDFLARE, F5 NETWORKS, FORTINET, ARBOR NETWORKS, NEXUSGUARD, AKAMAI TECHNOLOGIES & ROOT9B.

END POINT SECURITY SOLUTIONS – CARBON BLACK

Other Top End Point Security Solutions include: SYMANTEC, FORTINET, CHECKPOINT SOFTWARE, DUO, ABSOLUTE SOFTWARE, COUNTER TACK, TREND MICRO & MCAFEE.

ENTERPRISE ACCESS MANAGEMENT – BOMGAR

Other Top Access Management Vendors include: IMPRIVATA, TREND MICRO, MICROSOFT, CISCO, SAILPOINT, RSA SECURITY & MICRO FOCUS.

ENTERPRISE FIREWALL NETWORKS – FORTINET

Other Top Firewall Network Vendors include: SONICWALL, ZSCALER, CHECKPOINT SOFTWARE, PALO ALTO NETWORKS, CISCO, HUAWEI, FOREPOINT & SOPHOS.

HEALTHCARE DATA ENCRYPTION – ONPAGE

Other Top Data Encryption Vendors include: SENETAS, THALES, DATA LOCKER, SYMANTEC, SOPHOS, CHECKPOINT SOFTWARE, TREND MICRO, FLEXENTIAL, VIRTRU & APRICORN.

INTRUSION PROTECTION SOLUTIONS – IMPERVA

Other Top Intrusion Protection Solution Vendors include: CISCO, INTEL SECURITY (MCAFEE), TREND MICRO TIPPING POINT, IBM, PALO ALTO NETWORKS, ALERT LOGIC, HEWLETT PACKARD & EXTREME NETWORKS.

MEDICAL DEVICE & INTERNET OF THINGS SECURITY – FORTIFIED HEALTH SECURITY

Other Top Medical Device & IoT Security Solution Vendors include: BAYSHORE NETWORKS, SENRIO, RUBICON, SECURERF & BASTILLE.

OUTSOURCING & NETWORK MANAGED SERVICES – TRUSTWAVE

Other top Outsourcing & Managed Services Vendors include: CYTELLIX, SECUREWORKS, DXC TECHNOLOGIES, ARMOR, BOMGAR, NTT, OPTIV, LEVEL3, AT&T & SECUREWORKS.

PATIENT PRIVACY MONITORING – FAIRWARNING

Other Top Patient Privacy Monitoring Solution Vendors include: CONVERGEPOINT, HAYSTACK, IATRIC, CYNERGISTEK, MAIZE ANALYTICS, JERICHO SYSTEMS & TRUE VAULT.

RANSOMWARE PROTECTION – ZIX CORPORATION

Other Top Ransomware Protection Solution Vendors include: IBOSS, ZSCALER, DIGITAL GUARDIAN, WEBSENSE, CISCO, SYMANTEC & BARKLY.

SECURE COMMUNICATIONS PLATFORMS – DOC HALO

Other Top Secure Communications Platform Vendors include: PERFECTSERVE, PATIENT SAFE SOLUTIONS, VOCERA, IMPRIVATA, SPOK, ONPAGE, TIGER TEXT & TELEMEDIQ.

THREAT DETECTION & CYBER ATTACK PREVENTION – DIGITAL GUARDIAN

Other Top Threat Detection & Prevention Vendors include: SYMANTEC, FORCEPOINT, CROWDSTRIKE FALCON, CARBON BLACK, TRAPX SECURITY, MCAFEE, FIREEYE, IBM, FORTINET & CYLANCE.

THREAT INTELLIGENCE & ANALYTICS – JVION

Other Top Threat Intelligence & Analytics Vendors include: EY, RAYTHEON, RAPID7, CSC, HAYSTACK, NOVETTA, REDSEAL & SAS INSTITUTE.

About Black Book Research

Black Book Market Research LLC, its founder, management and staff do not own or hold any financial interest in any of the vendors covered and encompassed in the surveys it conducts. Black Book reports the results of the collected satisfaction and client experience rankings in publication and to media prior to vendor notification of rating results and does not solicit vendor participation fees, review fees, inclusion or briefing charges and/or vendor collaboration as Black Book polls vendors’ clients.

In 2009, Black Book began polling the healthcare user and client experience of now over 600,000 healthcare software and services users. Black Book expanded its survey prowess and reputation of independent, unbiased crowd-sourced surveying to IT and health records professionals, physician practice administrators, nurses, financial leaders, executives and hospital information technology managers. Cybersecurity services and products satisfaction and client experience polling was initiated in 2013 by Black Book Market Research LLC.

May 14, 2018 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Physicians Wary of MACRA’s Potential to Hasten the Demise of Independent Practices, Black Book Survey

Two-thirds of independent practices now deliberate selling out to hospital systems and larger groups or closing down by 2019 as the resource-intensive requirements of MIPS, administrative burdens, and under-optimized technology may make the transition to value-based care too discouraging.

According to a May 2016 survey of 1,300 physician groups of five or less clinicians by Black Book™, 67% of high Medicare-volume doctors foresee the end of their independence due to the so-called “doc fix” bill or “MACRA,” which repeals the Medicare Part B Sustainable Growth Rate (SGR) reimbursement formula and replaces it with a new value-based reimbursement system, will not have the technology, capital or staffing to sustain under the conditions of the Merit-based Incentive Payment System (MIPS).

Despite small practice education, training and technical assistance programs promised from CMS to help onboard physicians with the MACRA programs, 89% of the remaining solo practices expect to minimize Medicare volumes as to not be required to submit reports for the quality and clinical practice improvement activities or report in the cost performance category.

77% of small practices identified themselves as financially struggling currently due to physician staffing losses to larger group practices and hospital IDNs directly. 72% also blame their under-performing billing technology and compounding payment issues for their troubles.

“Physician payment based on 2017 performance isn’t scheduled to kick in until 2019,” said Doug Brown, Managing Partner of Black Book. “That’s far too long to maintain operations for the most stressed practices to hold on with outmoded technology and scarce billing support.”

The apparent solution for 78% of remaining independent primary care physicians is to join a bigger group or IDN to gain needed reporting, revenue cycle tools and support before 2019.

Black Book anticipates the EHR replacement market to decline in the small practice market as 55% of independent practitioners indicate they will make no technology shifts or purchases until they have made decisions on being acquired. “On the other hand, the growth opportunities for EHR vendors currently serving the larger practice market, IDNs and multi-specialty clinics are expected to appreciably benefit from these small practice acquisitions,” said Brown.

Based on the aggregate client experience and customer satisfaction scores on eighteen key performance indicators tuned to physician practice integration of documentation, operations and revenue cycle management the top-ranked electronic health records for small practices have changed as more cloud-based EHRs have made competitive pricing among several demands, particularly integrated billing, specialist-driven focuses, mobility, interoperability and patient satisfaction support.

63% of smaller (fewer than ten practitioners) and solo practice physicians have still not settled on a technology suite or set of products that delivers to their expectations on meaningful use, clinician usability, interoperability, and coordinated billing and claims, but over a third of those slower adopters expect to make product decisions before the end of this calendar year.

The top ranked solo/single physician practice EHRs in the 2016 survey are Kareo, Modernizing Medicine, drChrono, iPatientCare, athenahealth, CareCloud and Practice Fusion.

The top ranked EHRs for practices of 2-5 physicians are SRS Soft, ADP AdvancedMD, Practice Fusion, Amazing Charts and Allscripts.

Black Book™ surveyed over 33,000 healthcare records professionals, physician practice administrators, and ambulatory group leaders in the information technology arenas to provide EHR and practice billing system users, media, investors, quality minded vendors, and prospective buyers of practice software with a comprehensive comparison of the industry’s top respected and performing vendors. Black Book Research employs detailed key performance indicators targeted at ensuring high product and service performance through comparing vendors from the customer experience.

For comprehensive research and ranking data on medical and surgical specialties, consult http://www.blackbookmarketresearch.com for the latest customer experience results.

June 13, 2016 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.

Providers to adopt IT Outsourcing solutions in 2016 as more hospitals and physician practices Slide Deeper into Financial Uncertainty, Black Book survey

As the healthcare delivery industry deals with technology updates and implementations from ICD-10, EHR issues, physician alignment, big data, interoperability, value-based reimbursement reforms, decision support, revenue cycle, and patient marketplace shifts, hospital leaders embark on the major restructuring of hospital technology priorities and staffing alternatives for survival.

TAMPA FL

Black Book™ surveyed 1,030 hospital CIOs and IT leaders, as well as 243 CFOs and financial executives, to contribute their perceptions on technology solutions and outsourcing services options between July and October 2015. 266 hospital and inpatient organizations were represented in the survey in total. Additionally the business managers of 1,395 outpatient, alternative care, and physician practices also submitted ballots, nearly two thirds owned by hospital networks.

“Most hospital leaders see no choice but to evaluate and leverage next generation information and financial systems as an outsourced service in order to keep their organizations solvent and advancing technologically,” said Doug Brown, Managing Partner of Black Book Market Research.

“The reimbursement and population health challenges ahead to get paid, may require several new applications, and the frank reality is that outdated, understaffed and failing current solutions will close a marginally performing hospitals for good.”

Black Book underscores, that the healthcare industry is no stranger to IT outsourcing.  Contractors have provided care and service coverage clinically from radiology to therapies, and administrative work such as billing, collections and transcription for decades.

With pressure mounting from several directions, Black Book found that 73% of all surveyed hospitals and health systems over 300 beds are now looking outside for technology solutions from applications development to complex infrastructure services, with a much wider lens.  81% of provider organizations under 300 beds have also placed complex IT outsourcing in their priorities in the new year.

606 former and current users of IT outsourcing solutions provided feedback on the reasons why there is a new confidence in partnering with an outside contractors now, lessons learned since the early 2000s.

83% of the respondents agreed on the top ten lessons in failed hospital IT contracting engagements:

Outsourced IT services that should have stayed within the organization

Selected the incorrect vendor for the job

Neglected to realize the full costs of outsourcing

Permitted the outsourced service to get out of control

Disregarded employee and/or community concerns about outsourcing/offshoring

Wrote ineffective statements of work for the services outsourced

Failed to strategize an exit procedure before terminating the outsourcing contract

Unrealistic expectations

Lack of best practices for hospital IT outsourcing established

Did not monitor the performance of the contracted outsourcer

The return-on-investment and immediate access to trained staff and needed technology are the primary motivators for outsourcing today. 90% of hospital organizations in Q3 2015 state they are at or near an immediate (3 months or less) return on their investment for IT outsourcing.  Satisfaction with outsourcing vendors is also at an all-time high with 84% expressing their relationship is exceeding expectations.

Black Book notes that the last time healthcare provider industry saw a boon like this in IT outsourcing was in the late 1990’s. Back then, leading cost reduction consultants frequently recommended broad-based IT outsourcing to hospital organizations, but these contracts sharply declined after 2004.

“Population health, analytics, revenue cycle management, EHR and HIE initiatives have accelerated IT expenses again, much faster than anticipated as have market conditions and changes in hospital revenue that are severely strained margins,” said Brown. “This pressure on bottom lines has again raised IT outsourcing as a panacea for cost control, but it is also a way to access needed software solutions and expertise in running these applications.”

There is also little disagreement between CIOs and CFOs on how to best proceed with the exploration of IT outsourcing.

86% of CFOs and 91% of CIOs are willing to reshape their organization with the most effective combination of hospital staff and outsourced service providers in 2016 according to the survey results.

Learning from past experience, far fewer hospital executives will rely on the vendor to make the business case to outsource or not.

“Hospitals, from the board down are examining the costs and benefits and owning the responsibility to make sure hospital staff and outsourced services mesh well,” said Brown.

68% of CIOs endorse software development such as mobile solutions; big data support, predictive analytics and claims management are turning to their EHRs for possible add-ons and systems enhancements.

Black Book™ also announced the top performing IT outsourced services vendors as ranked by customer satisfaction on eighteen hospital and physician organizational client experience based key performance indicators.

Dell swept the end-to-end complex IT outsourcing solution category, as well as top client experience rankings in provider security solutions, population health support, applications management and infrastructure functions.

Also high scores in the complex IT outsourcing service line for hospitals and physician groups were IBM, Allscripts, HP, McKesson, Accenture, CSC, Unisys and Cognizant.

More Black Book survey results can be viewed at http://www.blackbookmarketresearch.com/outsourcing-managed-services/

About Black Book ™

Black Book Rankings, a division of Black Book Market Research LLC, provides healthcare IT users, media, investors, analysts, quality minded vendors, and prospective software system buyers, pharmaceutical manufacturers, and other interested sectors of the clinical technology industry with comprehensive comparison data of the industry’s top respected and competitively performing technology vendors. The largest user opinion poll of its kind in healthcare IT, Black Book™ collects over 450,000 viewpoints on information technology and outsourced services vendor performance annually. Black Book was founded in 2000, is internationally recognized for over 15 years of customer satisfaction polling, particularly in technology, services, outsourcing and offshoring industries.

Black Book™, its founders, management and/or staff do not own or hold any financial interest in any of the vendors covered and encompassed in this survey, and Black Book reports the results of the collected satisfaction and client experience rankings in publication and to media prior to vendor notification of rating results.

Follow Black Book on Twitter at http://www.twitter.com/blackbookpolls For methodology, auditing, resources, comprehensive research and ranking data, see http://www.blackbookmarketresearch.com

November 23, 2015 I Written By

John Lynn is the Founder of the HealthcareScene.com blog network which currently consists of 5 blogs containing over 11,000 articles with John having written over 5500 of the articles himself. These EMR and Healthcare IT related articles have been viewed over 18 million times. John also manages Healthcare IT Central and Healthcare IT Today, the leading career Health IT job board and blog. John is co-founder of InfluentialNetworks.com and Physia.com. John is highly involved in social media, and in addition to his blogs can also be found on Twitter: @techguy and @ehrandhit and LinkedIn.