Cloud computing has become a key element in healthcare, helping manage the increasing volume of data, such as electronic medical records (EMRs), patient information, and medical images.
Healthcare providers can achieve better scalability, improved collaboration, and more efficient data handling by combining cloud technology with healthcare software development.
In this blog, we’ll discuss the role of cloud computing in healthcare, its benefits and challenges, and practical tips for healthcare providers to make the most of it.
What is cloud computing in healthcare?
Cloud computing in healthcare involves using cloud-based services to store, manage, and process medical data over the internet. It replaces traditional on-premise servers.
This lets healthcare providers securely access and share patient data, including electronic medical records (EMRs) and medical images.
Healthcare organizations can create scalable and flexible solutions that improve data handling and collaboration by integrating cloud technology with healthcare development.
While there are clear advantages of cloud computing in healthcare, such as cost efficiency and real-time data access, there are also disadvantages of cloud computing in healthcare, including data security concerns and potential compliance challenges.
Read more: Top 10 Healthcare Technology Trends for the Future
Importance of cloud computing in healthcare
Cloud computing is a revolutionary technology that has significantly impacted the healthcare industry. Its benefits are numerous, and some of them include;
- Improved collaboration and communication
- Cost savings
- Increased accessibility & flexibility
- Better data security & disaster recovery
- Scalability & Efficiency
However, understanding just the points of importance is not enough; it is crucial to delve into the intricate details of how these benefits materialize.
There are several pros and cons to using cloud technology in healthcare software development. Some of the main advantages include:
Pros of cloud computing in healthcare
The core reason for the digitalization in the healthcare industry is its unique value proposition. To explore this, we will analyze the pros of using cloud computing in healthcare.
Improved collaboration and communication
Firstly, improved collaboration and communication are some of the most significant benefits of using cloud computing in healthcare. This technology enables healthcare professionals to collaborate and communicate more effectively by providing them with unique functionality to access patient records and critical data from anywhere and at any time.
This feature not only enhances information sharing between doctors and patients but also promotes informed decision-making by healthcare professionals.
Cost savings
Secondly, cloud computing offers notable cost savings for healthcare providers. For instance, cloud-based tools eliminate the need for expensive hardware and software. This benefit prevents healthcare providers from investing money in giant and expensive hardware and software and helps them to save costs.
Additionally, the pay-as-you-go model of cloud computing ensures that healthcare providers only pay for the resources they use.
Increased accessibility and flexibility
Thirdly, cloud computing increases accessibility and flexibility for healthcare providers. Cloud-based tools allow healthcare providers to access records and critical data anytime from anywhere but should have an internet connection.
This feature enhances the accessibility of healthcare services and promotes flexibility for healthcare providers to provide care remotely and collaborate with other healthcare providers as and when necessary.
Better data security and disaster recovery
Fourthly, cloud computing offers better data security and disaster recovery for healthcare providers. Data security is a critical concern for any industry, including healthcare.
Cloud-based tools provide healthcare service providers with secure and redundant data centers where they can store patient data easily.
Additionally, this technology ensures quick and easy restoration of data in any circumstance of a disaster or system failure.
Scalability and efficiency
The mind-boggling and staggering benefit of cloud computing in healthcare industry is the unprecedented scalability and efficiency. With cloud computing, they can swiftly and smoothly scale their IT infrastructure up or down at a moment's notice.
This level of flexibility translates to a more efficient response to the constantly evolving demands of the healthcare landscape.
In addition, compared to their traditional on-premise counterparts, cloud-based solutions offer a degree of efficiency that can translate to significant savings in time and money for healthcare providers, making cloud computing a game-changer in the healthcare industry.
Did you know?
The global healthcare cloud computing market was valued at $39.4 billion in 2022 & is expected to reach $89.4 billion by 2027 at a CAGR of 17.8% from 2022 to 2027. (Source)
Cons of cloud computing in healthcare
While there are many advantages to using cloud computing in healthcare, there are also some potential drawbacks to consider. Here are some of the cons of using cloud computing in healthcare:
Privacy and security concerns
One of the primary concerns with cloud computing in healthcare is data privacy and security. Healthcare providers must ensure that patient data is protected from unauthorized access, theft, and cyber-attacks.
Additionally, healthcare providers must ensure that cloud service providers comply with all relevant data privacy and security regulations.
Dependence on technology
Using cloud computing in healthcare requires healthcare providers to be dependent on technology. This means that any downtime or service interruptions could significantly impact patient care.
Additionally, healthcare providers must ensure that they have the necessary technical expertise to manage and maintain their cloud-based tools.
Potential downtime and service interruptions
Cloud computing is not immune to downtime and service interruptions. Healthcare providers must ensure that they have a plan in place to minimize the impact of downtime on patient care.
Additionally, healthcare providers must ensure that they have the necessary technical support to quickly resolve any issues that arise.
Limited control over data management
With cloud computing, healthcare providers must rely on cloud service providers to manage and store patient data. This means that healthcare providers have limited control over data management.
Additionally, healthcare providers must ensure that they have a plan in place to retrieve their data if they decide to switch to a different cloud service provider.
Regulatory compliance challenges
Healthcare providers must comply with numerous data privacy and security regulations, such as HIPAA and GDPR. Using cloud computing in healthcare can introduce additional regulatory compliance challenges, as healthcare providers must ensure that cloud service providers comply with all relevant regulations.
Read more: Digital Transformation in Healthcare: Key Challenges & Their Solutions
Case studies
To better understand the real-world impact of cloud computing in healthcare, it is important to examine case studies of cloud computing in healthcare.
These examples highlight both the successes and challenges healthcare organizations face when implementing cloud technology
Change Healthcare
In February 2024, Change Healthcare experienced the largest data breach of the year, affecting 100 million individuals. The BlackCat ransomware group encrypted files after stealing sensitive health data, accounting for over half of the year’s breached records.
Despite paying a $22 million ransom, the data was leaked further, causing additional extortion attempts. The attackers exploited a Citrix portal without multifactor authentication, exposing critical gaps in the company’s cybersecurity practices and highlighting risks of system consolidation.
Kaiser Foundation Health Plan
In April 2024, Kaiser Foundation Health Plan faced a data breach affecting 13.4 million individuals due to tracking technologies on its platforms. These tools transmitted sensitive data to third parties, leading to HIPAA compliance violations.
The breach led to updates in regulations requiring stricter use of tracking tools, particularly on patient engagement software. It underscored the importance of maintaining privacy and securing data on unauthenticated pages.
Ascension health
Ascension Health suffered a ransomware attack in May 2024, resulting in a four-week EHR outage and exposing data of 5.5 million patients. Hackers exploited a malicious file downloaded by an employee.
This incident underlined the importance of proactive cybersecurity strategies and employee training. It demonstrated how unguarded systems can expose organizations to significant operational and reputational risks.
HealthEquity
In March 2024, HealthEquity detected unauthorized access to SharePoint via a vendor's compromised device, exposing data of 4.3 million individuals. Sensitive information related to HSAs was leaked.
The breach highlighted the need for securing vendor devices and access credentials. It underscored how third-party vulnerabilities could pose significant threats to healthcare organizations.
Concentra health services
In 2023, Concentra Health Services was affected by a breach through its transcription provider, PJ&A, compromising nearly 4 million records. However, Concentra’s internal systems remained secure.
This incident revealed the risks third-party vendors pose to healthcare data. It stressed the importance of closely monitoring external service providers to safeguard patient information.
Best practices for cloud computing in healthcare
To maximize the benefits of cloud computing while mitigating the risks, healthcare providers should follow best practices that include:

Selecting the right cloud service provider
When choosing a cloud service provider, healthcare providers should consider factors such as their experience in healthcare, data privacy and security policies, compliance with relevant regulations and standards, scalability, and reliability. It is also important to conduct due diligence on the provider's track record and performance.
Ensuring data privacy and security
Healthcare providers must ensure that their data is secure and protected when using cloud computing. This includes measures such as encrypting data, restricting access to sensitive information, and monitoring for unauthorized access or breaches.
Conducting regular risk assessments
Healthcare providers should conduct regular risk assessments to identify potential security threats and vulnerabilities. This includes identifying and assessing risks to data privacy and security, as well as risks to service availability and performance.
Developing a disaster recovery plan
Healthcare providers should have a disaster recovery plan in place to ensure that they can recover critical data and systems in the event of a disaster or service interruption. This includes regular backups and testing of the recovery plan.
Complying with relevant regulations and standards
Healthcare providers must comply with various regulations and standards related to data privacy, security, and compliance. This includes regulations such as HIPAA and GDPR, as well as standards such as ISO 27001 and NIST.
Conclusion
Cloud computing in the healthcare industry offers numerous benefits, including improved collaboration, greater flexibility, better accessibility, and enhanced data security.
Yet, challenges like privacy concerns, technology dependence, and regulatory compliance must be addressed.
Healthcare providers can gain valuable insights and avoid potential pitfalls by reviewing case studies of successful and unsuccessful implementations. As the healthcare sector progresses, cloud computing will remain a driving force in advancing innovation and improving patient care.
