Healthcare and life sciences organization leaders are “stretched thin,” and the industry is “on the brink of crisis” as leaders navigate the evolving world of cybersecurity, according to Barnes & Thornburg’s inaugural Healthcare Compliance Outlook report, published Wednesday.
The large business law firm surveyed 120 compliance, risk and legal leaders across US-based healthcare and life sciences organizations — including hospital systems, physician’s practices, pharmaceutical, biotech and medical device manufacturers — to gather input on challenges facing the industry.
“Healthcare compliance professionals are dealing with expanding areas of risk, even as many report resource constraints that could limit their ability to meet challenges,” John E. Kelly, partner and chair of Barnes & Thornburg healthcare department and healthcare industry practice, said in a press release. “These pressures underscore the need for organizations to adopt a robust compliance strategy to stay ahead of the curve.”
Only 31% of the survey respondents told the firm they feel “very prepared” to meet future compliance and risk challenges.
“Our inaugural survey of healthcare compliance and life sciences professionals reveals an industry on the brink of crisis. As rapid technological change and mounting cyberattacks collide with limited budgets and complex regulatory frameworks, leaders are left scrambling to maintain patient data security — and quality of care,” according to the report.
Fifty-three percent of the respondents said they lack the financial resources needed to keep up with security threats, and 56% of the participants said they expect their resources to be stretched even more next year.
Consequently, 54% of the responding organizations said they already are seeking private equity backing or are considering it to ensure they have the resources necessary to maintain their quality of care.
The costs of generative and predictive artificial intelligence are increasing. Of the 75% of survey respondents who said they are using or exploring AI, 60% said they will need to add more than 10% to next year’s budget for this purpose.
Participants noted that no hard and fast ethical guidance for using AI exists.
“The rapid expansion of AI and digital health offers ample opportunities to enhance patient care and access. But organizations must establish guardrails to protect against associated risks, including cybersecurity and data threats, and ensure secure and ethical use of this powerful technology,” said Brian J. McGinnis, partner and co-chair of Barnes & Thornburg’s data security and privacy practice.
