Rural hospitals are grappling with the pressing issues of aging technology and heightened security concerns. The healthcare industry saw a significant 12.4% increase in costs between 2021 and 2023, outpacing the 5.2% increase in Medicare reimbursement. This financial gap is forcing hospitals to make difficult decisions between maintaining patient care and investing in cybersecurity and advanced technologies. In this critical scenario, rural hospital leaders must quickly reconsider their technology strategies, including potentially outsourcing CIO and CISO roles to dedicated partners or executives. This strategic shift can bring new perspectives, specialized expertise, and cost-effective solutions, helping healthcare organizations tailor their approaches to their unique needs and circumstances—a topic we’ll explore in more detail.
Small-scale computing
Many rural hospitals and small to mid-sized healthcare organizations have a CIO/IT leader, often from a technical support role, who can excel in day-to-day operations but needs strategic vision for today’s complex technology and cybersecurity landscape. This is where a fractional or virtual vCIO/CISO, with their strategic experience and oversight, can be a valuable asset.
A virtual CIO/CISO brings a wealth of strategic experience and oversight to organizations that can only justify a part-time technology or security leadership role. By exploring this model, healthcare providers gain access to seasoned professionals who can balance IT needs with robust cybersecurity measures. This expertise is invaluable in navigating the complex world of cyber insurance applications and ensuring compliance with privacy mandates. Additionally, this leader will introduce a critical system of checks and balances between IT operations and security protocols, increasing the organization’s overall technology resiliency. For rural hospitals striving to maximize their resources, the vCIO/CISO service is a cost-effective path to top-tier technology and cybersecurity leadership.
Outsourcing Dilemma
Some believe that outsourcing technology and cybersecurity can leave hospitals vulnerable because external entities must fully understand the complexities of how a hospital operates. They believe organizations need an internal expert to manage their specific needs. Organizations may consider using managed service providers (MSPs) that offer vCIO/CISO services to identify and address cybersecurity risks. While these services provide valuable resources, they present potential conflicts of interest. MSPs may highlight issues primarily to sell their solutions.
vCIO/CISO Structure
When considering virtual leadership of technology and security, you need to decide whether to hire a single vCIO or separate the roles into vCIO and vCISO. Organizations typically follow one of three models for the CIO role in security:
1. The CIO assumes full responsibility for security.
2. The CIO oversees the infrastructure, while the CISO manages security and reports to the CIO.
3. The CIO manages the infrastructure, the CISO takes care of security, but the CISO reports to another executive.
Each model has its strengths and challenges. The first centralizes authority. The second creates a transparent chain of command across all technologies. The third offers the greatest independence for security decisions, but can complicate communication between IT and security teams.
In conclusion, hiring a vCIO, vCISO, or both can be a game changer for rural hospitals with limited resources and evolving technology needs. These virtual leaders provide enterprise-level expertise, bridging the gap between outdated systems and modern security requirements. They can create targeted strategies to maximize budgets, ensure regulatory compliance, and implement robust cybersecurity measures.