How can an MSP protect ePHI?

Healthcare organizations are under constant pressure to balance patient care with stringent data protection requirements. One of the most critical assets they handle is electronic protected health information (ePHI), which includes medical records, billing details, insurance information, and any other data that can identify a patient. A single breach of ePHI can lead to devastating consequences, such as financial penalties, reputational damage, and most importantly, compromised patient trust.

Managed Service Providers (MSPs) can play a role in safeguarding this sensitive information. By offering proactive IT management, cybersecurity defenses, compliance expertise, and disaster recovery strategies, MSPs ensure healthcare organizations can focus on patient care while staying compliant with regulations like HIPAA.

What is ePHI?

Under the Health Insurance Portability and Accountability Act (HIPAA) Security Rule, ePHI is “protected health information that is maintained in or transmitted by electronic media.” Protected health information (PHI), including ePHI, includes:

• Patient names, addresses, phone numbers, and email addresses
• Social Security numbers
• Medical record numbers
• Insurance information
• Lab test results, imaging, diagnoses, and treatment plans
• Billing and payment records
• Any digital data tied to an identifiable patient

This data is often stored in electronic health record (EHR) systems, cloud servers, emails, and mobile devices, all of which are potential attack vectors.

How MSPs can protect ePHI

Healthcare organizations often lack the in-house resources to manage IT security at the level required by HIPAA. According to ISC2’s 2024 Cybersecurity Workforce study, the healthcare sector reported a 94% skills gap in cybersecurity, meaning nearly all organizations acknowledge they do not have enough qualified staff to meet their security needs. As a result, many providers struggle to maintain 24/7 monitoring, implement advanced threat detection tools, or keep up with rapidly evolving compliance requirements.

Managed Service Providers (MSPs) can fill this gap. They deliver enterprise-grade security tools and expertise at a fraction of the cost of building an in-house team. By offering services such as continuous monitoring, encryption, secure cloud solutions, endpoint protection, and incident response, MSPs enable healthcare organizations to protect ePHI effectively while staying HIPAA compliant. Beyond the technical safeguards, MSPs also assist with documentation, audits, and staff training, ensuring a holistic approach to compliance and security.

MSPs can offer:

• 24/7 monitoring and rapid response to threats.
• Layered security controls tailored to healthcare.
• Regulatory compliance through audits, reporting, and documentation.
• Scalable solutions that grow with the practice.

By outsourcing IT security to an MSP, healthcare providers can offload the complexity of protecting ePHI while ensuring compliance.

Related: What is the role of managed service providers in HIPAA compliance?

Strategies MSPs can implement to protect ePHI

Implementing access controls

Unauthorized access is the cause of 19% of data breaches reported to the HHS. MSPs can safeguard data by:

• Enforcing role-based access controls (RBAC) so staff only see the data necessary for their role.
• Requiring multi-factor authentication (MFA) for all logins, especially for remote access.
• Setting up session timeouts to prevent data exposure from unattended devices.

Encrypting data in transit and at rest

Encryption is a cornerstone of HIPAA compliance. MSPs deploy:

• AES-256 encryption for stored ePHI in databases and cloud servers.
• TLS/SSL encryption for data transmitted via email, EHR portals, or telehealth platforms.
• Automatic encrypted messaging systems for clinician–patient communication.

If a breach occurs, encryption ensures that stolen data is unreadable and thus remains protected.

Read also: Why should ePHI be encrypted at rest and in transit?

Monitoring networks and systems 24/7

Cybercriminals target healthcare organizations due to the value of medical records on the dark web. According to the 2018 Trustwave Global Security Report, the mean price of medical records on the dark web is $250.15. MSPs provide Security Operations Centers (SOCs) that monitor suspicious activity around the clock.

Techniques include:

• Intrusion detection systems (IDS) to flag abnormal traffic.
• Security Information and Event Management (SIEM) to aggregate and analyze logs.
• Automated alerts to respond to incidents in real time.

Regular security risk assessments

According to the 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… A regulated entity must implement procedures to regularly review its records to track access to ePHI and detect security incidents, periodically evaluate the effectiveness of security measures put in place and modify such security measures as necessary, and regularly reevaluate potential risks to ePHI.” MSPs handle this by:

• Identifying vulnerabilities in networks, applications, and devices.
• Evaluating risks posed by third-party vendors.
• Producing risk analysis reports with actionable recommendations.

Routine assessments prevent small weaknesses from becoming major breaches.

Learn more: How to perform a risk assessment

Secure cloud solutions

Many healthcare providers rely on cloud storage and applications to streamline workflows. According to the HealthTech Magazine, “In recent years, partnerships between cloud providers and EHR vendors have helped boost the visibility of such projects. About 81 percent of healthcare leaders have adopted the cloud in most or all parts of their business.” MSPs ensure these solutions meet HIPAA standards by:

• Partnering with HIPAA compliant cloud vendors (e.g., AWS, Azure, Google Cloud with signed business associate agreements (BAAs)).
• Implementing data redundancy to prevent loss.
• Encrypting all backups stored in the cloud.

Email and communication security

Email is one of the most common vectors for breaches, accounting for 27% of data breaches, according to the 2025 Verizon Data Breach Investigations Report. MSPs secure healthcare communications by:

• Enabling HIPAA compliant email encryption solutions.
• Using secure forms and portals instead of sending attachments.
• Deploying phishing-resistant filters to block malicious emails.

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

Data backup and disaster recovery

MSPs protect ePHI from ransomware attacks, natural disasters, or system failures by:

• Establishing regular automated backups of critical systems.
• Storing backups in geographically redundant locations.
• Creating disaster recovery plans (DRPs) that outline how quickly data can be restored.

HIPAA requires covered entities to have a contingency plan in place, and MSPs provide the infrastructure and expertise to ensure minimal downtime.

Read more: The elements of a good disaster recovery plan

Endpoint security and mobile device management (MDM)

With the rise of remote work and telehealth, securing endpoints (laptops, tablets, smartphones) has been women into healthcare. MSPs:

• Install next-generation antivirus (NGAV) and endpoint detection response (EDR) software.
• Enable mobile device management to remotely wipe lost or stolen devices.
• Enforce device encryption and strong password policies.

TechTarget revealed that Verizon’s Mobile Security Index indicated that “Thirty-eight percent of healthcare respondents said they faced compromise involving a mobile device last year, a significant increase from 2018 (25 percent).”

Employee training and awareness

Human error remains the leading cause of breaches. According to a study by IBM, human error is the main cause of 95% of cyber security breaches. MSPs offer security awareness training covering:

• How to spot phishing attempts.
• Proper handling of ePHI.
• Policies for device usage, password management, and reporting suspicious activity.

A study titled, Exploring the evidence for email phishing training: A scoping review, found that phishing victimization rates decreased by 40% following training.

Compliance documentation and reporting

HIPAA compliance requires extensive documentation, which many providers find overwhelming. MSPs assist by:

• Maintaining audit logs of access attempts and system activity.
• Generating compliance reports for regulators.
• Preparing organizations for HIPAA audits with clear documentation trails.

This ensures data is protected and also reduces liability in the event of an incident.

Related: Guidelines for HIPAA compliant documentation and record retention

FAQS

Why is protecting ePHI important?

Protecting ePHI is essential to maintain patient trust, comply with HIPAA regulations, avoid costly fines, and prevent reputational damage from data breaches.

What happens if an MSP fails to protect ePHI?

If an MSP fails to meet HIPAA requirements, both the MSP and the covered entity may face financial penalties, legal action, and reputational harm.