Cybersecurity in Health Care: From Legal Risk to Strategic Resilience

In 2026, cybersecurity and data privacy have moved to the forefront of legal and operational risk for health care organizations. This shift is underscored by a recent survey published by law firm Norton Rose Fulbright of in-house legal leaders, which found that litigation over cybersecurity and data privacy regulations now tops the list of concerns for health care legal departments. As one respondent put it, “it’s not a question of if something happens, it’s when”. 

This is not a theoretical risk. Recent years have seen a dramatic escalation in both the frequency and impact of cyberattacks targeting health care. Ransomware, data breaches and vendor-related incidents have disrupted care delivery and exposed millions of patient records, underscoring the urgent need for resilience. 

Why Health Care Is Uniquely Vulnerable

Health care organizations occupy a unique position: they are both stewards of highly sensitive data and providers of essential, life-sustaining services. This dual responsibility creates a “perfect storm” of risk.  

The sector’s reliance on complex vendor relationships, legacy IT systems and a rapidly expanding network of connected devices increases its exposure. Industry data consistently show that a significant proportion of stolen protected health information (PHI) originates with third-party vendors, not just within hospital walls.  

Meanwhile, evolving regulatory requirements at both federal and state levels adds further layers of complexity and compliance obligations. 

Beyond Compliance: The Brand and Trust Imperative

While the financial and legal stakes are high, the reputational risks are equally profound. In health care, where trust is foundational, a single cyber incident can erode years of goodwill with patients, partners and regulators. Increasingly, however, stakeholders understand that breaches are, to some extent, inevitable in today’s threat landscape. What matters most is how an organization responds; how transparently it communicates, how quickly it acts, and how well it cares for those affected. Organizations are judged not simply by the fact that a breach occurred, but on the quality of their response, both operationally and in their communications. Negative headlines and online coverage can influence perceptions long after the technical issues are resolved, making it essential to rebuild and reinforce trust quickly and consistently after a breach. 

Litigation, Regulatory Pressure and the Brand Imperative

The consequences of a breach are more severe than ever. The average cost of a health care data breach reached $10.9 million in 2024, the highest of any industry. Regulatory enforcement is intensifying, with the U.S. Department of Health and Human Services (HHS) Office for Civil Rights issuing multi-million-dollar fines for failures in risk assessment and basic controls.  

Proposed updates to HIPAA may soon make encryption and multi-factor authentication mandatory, further raising the bar for compliance. Yet, beyond the immediate legal and financial risks, the enduring challenge remains protecting brand reputation and stakeholder trust. 

From Compliance to Resilience: A Strategic Approach

The evolving threat landscape demands a shift from reactive compliance to proactive resilience. It’s critical that their leaders recognize that cyber resilience is not just an IT issue, but a strategic, organization-wide priority. The most effective organizations are those that embed cybersecurity into their governance, culture and communications. 

Key elements of a resilient approach include:

• Board and Leadership Engagement: Cybersecurity must be a standing agenda item for boards and executive teams, with directors seeking education on cyber risks and demanding regular briefings on organizational readiness. 

• Proactive Risk Assessment and Incident Planning: Regular, comprehensive risk assessments extending across the vendor ecosystem are essential. Incident response plans should be living documents, tested and updated as threats evolve. 

• Employee Training and Culture: Human error remains a persistent risk. Ongoing cyber hygiene training and realistic simulations can significantly reduce vulnerabilities. 

• Third-Party Risk Management: Given the prevalence of breaches originating from vendors, organizations must rigorously assess and monitor the security posture of all third parties. 

• Strategic Communication and Stakeholder Engagement: Transparent, timely communication is critical for managing regulatory reporting, patient notifications and media inquiries in the event of a breach. 

• Brand and Reputation Management: A research-driven approach to understanding stakeholder perceptions, coupled with decisive action and clear communication, can help organizations rebuild and enhance their reputation, even after a crisis. 

• Continuous Improvement and Adaptation: The threat landscape is dynamic. Ongoing training, technology upgrades and partnerships with external experts are essential to staying ahead. 

Guiding Organizations Through Critical Brand Moments

Experience shows that the most resilient health care organizations are those that anticipate risk, act decisively in moments of crisis and communicate authentically with stakeholders. A data-driven, research-based approach to strategy development, rooted in a deep understanding of the business environment and stakeholder expectation, enables organizations not only to recover from incidents, but to emerge stronger and more trusted. 

Building a Resilient, Trusted Future

The latest survey results are a wake-up call for the sector. As litigation and regulatory scrutiny intensify, health care organizations must elevate cybersecurity to a strategic imperative; one that protects not only data, but also patient safety, operational continuity and public trust. By embracing a proactive, holistic approach to cyber resilience and brand reputation, health care leaders can turn today’s legal risks into tomorrow’s competitive advantage.