Why Is Healthcare Data Frequently the Target of Ransomware Attacks?

Healthcare organizations are increasingly falling victim to ransomware attacks, which cause significant disruptions to patient care and expose sensitive data.

According to Statista, in 2024, 67% of healthcare organizations fell victim to ransomware, and nearly 40% of those said that it took over a month to recover. 

Moreover, according to OR Manager, the total cost of ransomware attacks on healthcare organizations from 2018 to 2024 was a staggering $21.9 billion, which only accounts for the United States. 

The number of ransomware attacks on healthcare delivery organizations in the US has more than doubled between 2016 and 2021, and the upward trend is expected to continue. This illustrates the need for better preparation and adequate cybersecurity measures. 

That said, an underlying question here begs to be answered: why is healthcare data frequently the target of ransomware attacks? Keep reading to find out! 

Key Takeaways

• Healthcare data is a high-value target for cybercriminals due to its long-term use in fraud, identity theft, and blackmail.
• Ransomware attacks disrupt critical medical services, delaying patient care, surgeries, and administrative functions.
• Outdated IT systems and connected medical devices increase vulnerability by providing easy entry points for attackers.
• Human error remains a major risk factor, with phishing attacks being a common initial access point for ransomware.
• Strong cybersecurity measures, including multi-factor authentication and network segmentation, can help prevent ransomware infections.
• A well-prepared incident response plan and secure offline backups are essential for recovering from ransomware attacks without paying a ransom.
• Unified detection and response solutions such as Guardz can help keep medical data protected from ransomware. 

Why is Healthcare Data a Prime Target for Ransomware Attacks?

Healthcare data is one of cybercriminals’ most valuable assets, making it a frequent target for ransomware attacks. The combination of highly sensitive personal information and the urgent nature of healthcare operations creates a scenario where attackers can demand substantial ransoms with a high likelihood of payment.

The High Value of Protected Health Information (PHI)

Protected Health Information (PHI) contains a wealth of personal details, including names, addresses, Social Security numbers, insurance records, and medical histories. Unlike financial data, which can often be replaced or deactivated, PHI has long-term value. 

Stolen healthcare records can sell for hundreds or even thousands of dollars per record on dark web marketplaces, significantly more than stolen credit card information. Cybercriminals use this data for identity theft, insurance fraud, prescription drug scams, and even blackmail.

Medical records also contain immutable data, such as past diagnoses, genetic information, and treatment history, which cannot be changed like a credit card number. This makes PHI a valuable asset for long-term fraud schemes, further increasing its appeal to cyber criminals.

The Critical Nature of Healthcare Operations

Unlike other industries, healthcare organizations cannot afford prolonged system outages. Hospitals, clinics, and healthcare providers rely on continuous access to patient records, medical devices, and operational systems to deliver care. 

A ransomware attack that locks healthcare providers out of their systems can delay emergency treatments, disrupt surgeries, and even put patients’ lives at risk.

This urgency increases the likelihood that healthcare institutions will pay a ransom to restore operations quickly. Unlike businesses that may be able to halt operations temporarily, healthcare providers must resolve disruptions as soon as possible. Attackers exploit this vulnerability, knowing that a delayed response could have life-threatening consequences.

Let’s examine some recent ransomware attacks on healthcare organizations. 

Recent Examples of Healthcare Ransomware Attacks

Ransomware attacks continue to disrupt the healthcare industry, causing extensive operational disruptions, data breaches, and financial losses. 

In 2024, several high-profile incidents demonstrated the increasing sophistication and persistence of cybercriminal groups targeting healthcare organizations.

UnitedHealth Group’s Change Healthcare Attack

One of the most significant ransomware attacks of 2024 targeted UnitedHealth Group’s Change Healthcare unit, a major provider of healthcare payment and revenue cycle management services. 

In February, the BlackCat ransomware group claimed responsibility for the attack, which led to widespread disruption in healthcare billing and payment processing.

The breach is estimated to have impacted up to 100 million individuals, making it one of the largest healthcare-related cyberattacks in history. 

The attack caused severe financial strain on healthcare providers that rely on Change Healthcare’s systems for insurance claims processing and payment coordination. Many hospitals and clinics faced delays in receiving reimbursements, forcing some to implement contingency plans to continue operations.

Ascension Health Ransomware Incident

In May 2024, Ascension Health, one of the largest nonprofit health systems in the United States, fell victim to a ransomware attack that severely impacted its operations. The attack forced the organization to take its IT systems offline, disrupting patient care across its 140 hospitals and numerous outpatient facilities.

The system outage led to widespread appointment cancellations, delays in accessing electronic health records (EHRs), and interruptions in essential services. 

Patients experienced prolonged wait times, and healthcare providers were forced to revert to manual processes, slowing down diagnoses and treatments. It took over a month for Ascension Health to fully restore its EHR system and resume normal operations.

What Makes Healthcare Organizations Vulnerable to Ransomware?

Healthcare organizations are frequent targets for ransomware due to outdated technology, insufficient cybersecurity awareness, budget constraints, and the increasing use of connected medical devices. These factors create security gaps that cybercriminals exploit, often with devastating consequences.

Outdated IT Infrastructure and Unpatched Systems

Many healthcare providers still rely on legacy IT systems that lack vendor support and critical security updates. These outdated systems create easy entry points for cyber criminals who exploit known vulnerabilities. 

Even when patches are available, organizations may delay implementation due to concerns about system compatibility or potential downtime.

Replacing aging infrastructure is costly and complex, particularly for smaller healthcare facilities with limited budgets. As a result, cybercriminals target these organizations, using automated tools to identify unpatched systems and deploy ransomware.

Lack of Cybersecurity Awareness Among Staff

Human error remains one of the biggest contributors to ransomware infections. Many healthcare employees, including doctors and administrative staff, are not adequately trained in cybersecurity best practices. 

In fast-paced medical environments, staff may unknowingly expose systems to threats by clicking on phishing emails, opening malicious attachments, or using weak passwords.

Shared workstations and easily accessible login credentials increase the risk of unauthorized access. Cybercriminals exploit these weaknesses through social engineering tactics.

Limited Resources for Cybersecurity Measures

Many healthcare organizations operate with tight budgets, particularly smaller hospitals and clinics, leaving little room for cybersecurity investments. 

Detecting and responding to ransomware threats becomes difficult without dedicated IT security teams or advanced security tools.

Even larger healthcare systems sometimes underfund cybersecurity initiatives, prioritizing immediate patient care needs over IT security.

Highly Connected Medical Devices and Networks

The growing use of connected medical devices, such as infusion pumps and patient monitors, has expanded the attack surface for ransomware. ‘

These devices often lack strong security controls and do not receive regular updates, making them easy targets for attackers.

Once compromised, attackers can use these devices to gain access to hospital networks and spread ransomware. Because healthcare networks are highly interconnected, a single infected system can quickly escalate into a widespread outage, disrupting patient care.

The Urgency Factor: A Key Exploitation Point

Healthcare organizations rely on uninterrupted access to patient records and medical devices. When ransomware locks these systems, providers face immediate operational disruptions. 

Cybercriminals exploit this urgency, knowing hospitals may be more willing to pay the ransom to restore critical services.

This makes it even more important for healthcare organizations to implement preventive measures, such as robust backup systems, incident response plans, and staff training, to mitigate the impact of ransomware attacks.

The High Stakes of Ransomware Attacks on Healthcare

Ransomware attacks on healthcare organizations have severe consequences beyond financial losses. 

These incidents disrupt critical medical services, expose sensitive patient data, and erode trust in the affected institutions. 

Given healthcare’s essential nature, the impact of these attacks can be life-threatening, making them one of the most damaging forms of cybercrime in the industry.

Disruption of Critical Patient Care Services

When ransomware infects a healthcare facility, it can render electronic health records (EHRs), scheduling systems, and even medical devices inoperable. 

This disruption forces hospitals and clinics to revert to manual processes, significantly slowing patient care. Appointments and surgeries may be postponed, emergency services may need to divert patients to other facilities, and critical procedures could be delayed.

For example, nearly half of all ransomware attacks on US hospitals and healthcare providers 

resulted in delayed service delivery, often with potentially catastrophic outcomes. In the grander scheme of things, ransomware attacks are shown to disrupt patient care negatively in up to 75% of cases. 

Without access to EHRs, healthcare providers may struggle to retrieve vital medical history, allergies, or current medications, increasing the risk of medical errors.

Beyond patient care, ransomware incidents can also disrupt administrative operations, making it challenging to process insurance claims, schedule follow-ups, or manage billing. This creates additional stress for patients and staff, further compounding the attack’s impact.

Exposure of Sensitive Patient Data

Many ransomware attacks now involve double extortion, in which cybercriminals encrypt data and steal it, threatening to release it unless a ransom is paid. 

Protected health information (PHI) and personally identifiable information (PII) are particularly valuable on the black market, as they contain details like Social Security numbers, insurance records, and private medical histories.

For example, in 2023, 725 data breaches were reported to the OCR, exposing more than 133 million patient records. 

The exposure of PHI can have long-term consequences for patients, including identity theft, fraudulent medical claims, and even blackmail. Healthcare providers must also deal with legal and regulatory fallouts. 

Under laws such as the Health Insurance Portability and Accountability Act (HIPAA) in the U.S., organizations are required to safeguard patient information. Failing to do so can result in hefty fines, lawsuits, and mandatory patient notifications.

For example, after a major ransomware attack, a healthcare provider may be legally required to offer credit monitoring services to affected patients, increasing the overall cost of the breach.

Financial Losses and Reputational Damage

The financial burden of a ransomware attack can be overwhelming. Even if a healthcare provider refuses to pay the ransom, the costs of recovery, forensic investigations, legal fees, and regulatory penalties can be staggering.

According to an IBM report, the average cost of a healthcare data breach reached $10.1 million in 2022, a 9% increase from 2021 and a 41.6% increase since 2020, the highest of any industry. Smaller healthcare facilities with limited cybersecurity budgets may struggle to recover, potentially forcing some to shut down permanently.

Beyond direct financial losses, ransomware attacks can severely damage a healthcare provider’s reputation. Patients expect medical institutions to protect their personal information, and a breach can shake their confidence. A decline in patient trust can lead to lower patient retention, reduced new patient sign-ups, and a significant drop in revenue.

For healthcare organizations, the damage is not only financial but also operational. Rebuilding a reputation after a data breach requires transparency, public trust initiatives, and demonstrable improvements in cybersecurity, an effort that takes time and resources.

So, how do these ransomware attacks on healthcare organizations work? 

How Do Ransomware Attacks on Healthcare Organizations Work?

Ransomware attacks on healthcare organizations typically follow a structured process, beginning with initial network infiltration, followed by lateral movement within systems, data exfiltration, and ultimately, file encryption with a ransom demand.

Here’s how ransomware in the healthcare organization works:

Initial Access Through Phishing or Exploiting System Vulnerabilities

Cybercriminals often gain initial access to healthcare networks through phishing emails or by exploiting vulnerabilities in outdated or misconfigured systems. Phishing attacks are particularly effective because healthcare staff frequently handle urgent communications and may unknowingly click on malicious links or download infected attachments. 

Aside phishing, attackers actively scan IT infrastructure for weaknesses, such as unpatched software, weak passwords, and misconfigured network settings. 

Older operating systems and legacy software, common in many healthcare facilities, often lack critical security updates, making them easy targets. Implementing security patches regularly, enforcing strong password policies, and restricting administrative privileges can significantly reduce the risk of unauthorized access.

Lateral Movement and Data Exfiltration

Once inside the network, attackers move laterally, seeking higher levels of access to compromise additional systems and obtain sensitive data. They may use stolen credentials, exploit security gaps, or deploy tools to escalate their privileges.

During this phase, attackers often extract large amounts of data before launching the ransomware payload. 

Stolen data may include electronic health records (EHRs), financial records, insurance details, and personally identifiable information (PII). 

Cybercriminals use this information for double extortion, a tactic where they demand payment to restore encrypted files and prevent the release of stolen data. This increases pressure on the victim, as a public data leak can result in regulatory fines, legal liabilities, and reputational damage.

File Encryption and Ransom Demands

After securing valuable data, attackers deploy ransomware to encrypt files across the network, rendering critical systems inaccessible. At this point, they issue a ransom demand, usually requiring payment in cryptocurrency, to provide the decryption key.

The ransom amount varies based on the healthcare organization’s size and perceived financial capacity. Attackers often impose deadlines, threatening to delete the decryption key, permanently lock files, or publicly release stolen data if payment is not made on time.

Many healthcare providers feel compelled to pay due to prolonged downtime’s operational and legal consequences. However, paying does not guarantee data recovery. Studies have shown that even when victims comply, attackers may provide faulty decryption tools, retain access to the network for future attacks, or demand further payments.

So, what can healthcare organizations do to prevent ransomware attacks? 

What Cybersecurity Measures Can Healthcare Organizations Implement to Prevent Ransomware Attacks?

To mitigate the growing threat of ransomware, healthcare organizations must adopt a multi-layered cybersecurity strategy. This approach includes technical defenses, employee training, network security, and collaboration with cybersecurity professionals. By taking proactive steps, healthcare providers can reduce their risk of cyberattacks and protect sensitive patient data.

The following steps help protect healthcare organizations from ransomware attacks: 

Strengthen Access Controls and Require Multi-Factor Authentication

Controlling access to sensitive systems is one of the most effective ways to prevent unauthorized entry. Role-based access control (RBAC) ensures that employees only have access to the data and applications necessary for their job. 

This principle, known as least privilege access, minimizes the risk of insider threats and limits damage in case of a breach.

In addition to strong access control policies, multi-factor authentication (MFA) adds another layer of security. 

MFA requires users to verify their identity using multiple factors, such as a password and a one-time code sent to a mobile device. This makes it significantly more difficult for attackers to gain access, even if they obtain login credentials through phishing or credential-stuffing attacks.

Regularly Patch and Update Systems

Outdated systems are a major vulnerability in healthcare IT environments. Cybercriminals actively exploit known software flaws to deploy ransomware, making timely patching and updates critical. 

Healthcare organizations should establish a regular update schedule, prioritizing high-risk vulnerabilities in operating systems, network devices, and medical software.

Automating patch management helps ensure that updates are applied consistently across all devices. For legacy systems that cannot be updated easily, organizations should isolate them from the main network to limit their exposure to threats.

Educate Employees on Cybersecurity Best Practices

Human error remains one of the leading causes of ransomware infections. Attackers frequently use phishing emails and social engineering tactics to trick employees into clicking malicious links or downloading infected attachments.

Regular cybersecurity training is essential to ensure staff members can recognize suspicious activity. Employees should be trained to:

• Identify phishing attempts and report them immediately
• Use strong, unique passwords for different accounts
• Avoid public Wi-Fi when accessing patient records remotely
• Never share login credentials or use unauthorized USB devices
• Teach employees to use MFA

Organizations can reinforce these lessons by conducting simulated phishing exercises, which test employee responses and help identify areas where additional training is needed.

Segment Networks and Isolate Critical Systems

Healthcare networks often contain a mix of modern and legacy systems, making them complex and vulnerable to ransomware propagation. Implementing network segmentation limits an attacker’s ability to move laterally once inside the system.

For example, electronic health records (EHRs), medical devices, and administrative systems should be placed in separate network zones with restricted access between them. Firewalls, virtual LANs (VLANs), and access control lists (ACLs) can further enforce segmentation and minimize the impact of an attack.

Moreover, isolating medical devices, which often lack robust security protections, can prevent them from being used as entry points for ransomware infections.

Deploy Advanced Threat Detection and Response Solutions

Proactive threat detection is essential for identifying and stopping ransomware attacks before they cause widespread damage. 

Healthcare organizations should invest in:

• Endpoint Detection and Response (EDR): EDR solutions continuously monitor devices for signs of malicious activity and can automatically block or isolate infected endpoints.
• Security Information and Event Management (SIEM): SIEM platforms analyze security logs in real-time, identifying unusual patterns that may indicate an attack.
• Intrusion Detection and Prevention Systems (IDPS): These tools monitor network traffic for suspicious behavior and prevent unauthorized access attempts.

By integrating these technologies, healthcare IT teams can detect ransomware threats early and respond before attackers encrypt critical data.

How Can Healthcare Organizations Mitigate the Impact of a Ransomware Attack?

Even with strong cybersecurity defenses in place, healthcare organizations may still fall victim to ransomware attacks. When an incident occurs, having a well-defined response plan and effective recovery strategies can reduce downtime, protect patient data, and prevent further damage.

Maintain Offline Data Backups

Regular data backups are one of the most effective ways to recover from a ransomware attack without paying a ransom. Offline, air-gapped backups, which are disconnected from the network, prevent attackers from encrypting or deleting backup copies.

A best practice is the 3-2-1 backup strategy:

• Maintain three copies of your data
• Store them on two different types of storage media
• Keep one copy offsite or in an isolated environment

To ensure backups are reliable, organizations should regularly test their recovery process. Periodic testing helps confirm that backed-up data can be restored quickly and without corruption, reducing delays in resuming patient care.

Develop and Test Incident Response Plans

A well-structured incident response plan (IRP) helps healthcare organizations contain ransomware attacks and restore normal operations efficiently. 

This plan should include:

• Defined roles and responsibilities for IT staff, leadership, and legal teams
• Clear steps to isolate infected systems and prevent ransomware from spreading
• Guidelines for restoring operations, including prioritizing critical systems like electronic health records (EHRs)

Testing the plan through tabletop exercises and real-world simulations helps identify weaknesses before an actual attack occurs. Updating the IRP regularly ensures that it remains aligned with evolving threats and new security technologies.

Communicate Transparently With Patients and Stakeholders

Clear and timely communication with patients, employees, and stakeholders is essential during a ransomware attack. Healthcare organizations should provide updates on:

• The nature of the incident and what data may have been affected
• Steps being taken to contain the attack and restore services
• Resources available to assist affected individuals, such as credit monitoring and identity theft protection

Public messaging should be developed in coordination with legal and public relations teams to ensure accuracy and consistency. Keeping patients and regulatory authorities informed can help maintain trust and demonstrate the organization’s commitment to security.

Strengthening Cyber Resilience in Healthcare

While prevention is critical, healthcare organizations must also be prepared to respond effectively to ransomware attacks. 

Maintaining secure backups, a tested incident response plan, and clear communication protocols ensure that disruptions are minimized and patient data remains protected.

Cybersecurity providers like Guardz offer proactive monitoring, tailored security solutions, and expert guidance to help healthcare organizations reduce their risk and recover from cyber threats efficiently. Investing in a comprehensive security strategy today can prevent costly disruptions in the future.

Final Thoughts on Ransomware Attacks on Healthcare Data

Healthcare organizations are prime targets for ransomware due to the high value of protected health information (PHI), outdated infrastructure, and the urgent nature of medical services. Cybercriminals exploit security gaps, knowing that hospitals and clinics cannot afford prolonged downtime. 

The increasing frequency and sophistication of these attacks highlight the need for strong cybersecurity defenses, employee training, and effective incident response plans.

The consequences of ransomware in healthcare go beyond financial losses. These attacks disrupt patient care, delay critical procedures, and expose sensitive data, often resulting in legal penalties and reputational damage.

As ransomware tactics evolve, healthcare providers must stay ahead by investing in cybersecurity solutions and partnering with experts to strengthen their defenses. The health and safety of patients depend on a secure and resilient healthcare system.

Visit Guardz for complete Unified and Detection Response for MSPs managing healthcare organizations, providers, and data. 

Frequently Asked Questions

Why Do Hackers Prefer Targeting Healthcare Organizations Over Other Industries?

Hackers focus on healthcare because protected health information (PHI) is more valuable than financial data and cannot be easily changed like a credit card number. Additionally, hospitals and clinics operate under time-sensitive conditions, increasing the likelihood of quick ransom payments to restore operations.

How Do Ransomware Attacks Affect Healthcare Costs?

Beyond ransom payments, healthcare organizations face legal fees, regulatory fines, data recovery costs, and patient compensation after an attack. Hospitals may also lose revenue due to service disruptions and reputational damage, raising overall healthcare costs for providers and patients alike.

What Role Do Medical Devices Play in Ransomware Attacks?

Many connected medical devices, such as infusion pumps and patient monitors, lack proper security protections. Attackers can exploit these vulnerabilities to gain network access and deploy ransomware, affecting both patient care and hospital operations.

Can Cyber Insurance Cover Ransomware Attacks in Healthcare?

Cyber insurance may cover some financial losses from ransomware, including data recovery and legal fees, but many policies do not cover ransom payments. Additionally, insurers often require organizations to meet strict cybersecurity standards before providing coverage.

How Long Does It Take a Hospital to Recover From a Ransomware Attack?

Recovery times vary depending on the severity of the attack and the organization’s preparedness. Some hospitals take weeks or even months to fully restore systems, especially if backups are not immediately available or if attackers delete critical files before encryption.