Why AI-powered Cybersecurity is Non-negotiable for Healthcare Leaders in 2025

Hospitals and healthcare leaders are under constant attack by cybercriminals. These attackers want patients’ private health information, financial records, and even the systems that keep hospitals running. For healthcare leaders, it is not about the question of if they will be attacked, but “when.” The repercussions are serious, including delayed surgeries, stolen patient data, hefty penalties, and, most importantly, loss of trust that can take years to rebuild. Globally, healthcare is the most targeted sector for cyberattacks, with a 68% attack rate, just behind central and federal governments.

The Soaring Cost of Cyberattacks: More than Just Money

In 2024, 67% of healthcare organizations were hit by cyberattacks, costing an average of $10.93 million per breach—nearly triple the cost for other industries. But it’s not just about money. Attacks disrupt care, forcing hospitals to cancel surgeries, turn away ambulances, and even go back to using paper records. For health insurers, breaches expose sensitive member data, leading to identity theft and fraudulent claims.

Real-life Examples:

1. A 2024 ransomware attack on a Midwest hospital system halted chemotherapy treatments for 1,200 cancer patients for 72 hours, highlighting the human cost of cyber incidents

2. A breach at Change Healthcare of the United Health Group exposed data for 100 million people, causing months of chaos in billing and patient care, even after a $22 million ransom was paid

Emerging Threats in 2025: Attackers are Getting Smarter

Cybercriminals are now using advanced AI tools like AI and quantum computing to bypass traditional defences and launch even more dangerous attacks. Healthcare breaches in 2025 will involve AI-driven tactics, such as:

• AI Voice Scams: Fake voices often trick people into transferring money or phishing emails so convincing they fool even the most cautious
• Adaptive Phishing: AI-generated emails that mimic legitimate communication from insurers or providers
• Automated Vulnerability Scanning: Criminals exploit unpatched systems in real time

Quantum Computing Risks

Quantum computers could break the encryption protocols that protect patient data. A 2022 Deloitte survey revealed that 45% of healthcare organizations lack a quantum-readiness strategy, leaving them vulnerable to “harvest now, decrypt later” attacks.

Ransomware 2.0

Cybercriminals now use triple extortion:

1. Encrypt systems
2. Steal data and threaten to leak it
3. Blackmail patients using stolen health records, such as mental health or HIV status

Regulatory Overhaul: HIPAA Updates and Third-party Accountability

The U.S. Department of Health and Human Services (HHS) has proposed the most significant HIPAA updates since 2013, including:

• Vendor Accountability: Business associates, including cloud providers and billing companies, must now comply with HIPAA’s Security Rule
• Implications for Payers: Insurers must audit third-party administrators and telehealth platforms to avoid penalties
• Implications for Providers: Hospitals must ensure EHR vendors and medical device manufacturers meet updated encryption standards

Building Cyber Resilience

Healthcare leaders cannot afford to wait. Here’s what they need to do:

• Use AI for Defense: AI is no longer optional. Machine learning models can analyze 10,000+ data points per second to detect anomalies while reducing response time from months to hours
• Adopt Zero Trust: Verify every user and device, every time—without any exceptions
• Workforce Training and Culture Shift: Regular training and phishing simulations can turn staff into the first line of defence
• Incident Response and Disaster Recovery: Have a solid incident response plan, offline backups, and cyber insurance

The Window to Act is Closing Real Soon!

Payers and providers must:

1. Invest in AI and Zero Trust to stay ahead of evolving threats
2. Train their teams to spot and stop attacks
3. Push for clearer regulations and collaborate with others to share threat intelligence

Organizations prioritizing cybersecurity will survive and thrive, earning patient trust and operational resilience. The stakes are too high to wait – irrespective of industry. Every industry today needs to be alert about cyberattacks, especially in the age of AI.

How Newgen is Leading the Charge in the Cybersecurity Space?

At Newgen, we adopt a proactive cybersecurity approach with a well-defined Software Development Life Cycle (SDLC) that incorporates:

• Threat Modeling
• Static Application Security Testing (SAST)
• Software Composition Analysis (SCA)
• Dynamic Application Security Testing (DAST)

Additionally, there are rigorous source code reviews to ensure security by design. We emphasize the human element through regular training and phishing simulations to enhance threat awareness.

Our Vulnerability Management Program is designed to constantly monitor and manage risks. We align with the highest security standards, such as HIPAA, ISO 27001, and NIST, to safeguard sensitive healthcare data effectively.