Cash-Strapped Hospitals Struggle to Fortify Cyber Defenses, Survey Shows

By Frank Jones, CISSP   Published: 03/04/25   Updated: 10/23/26   2 min read

Cash-Strapped Hospitals Struggle to Fortify Cyber Defenses, Survey Shows

Smaller hospitals fall behind on security

Hospitals keep moving more care onto digital systems, and attackers have followed. Smaller hospitals struggle most to keep up with the spending needed to protect patient data. A recent survey by FinThrive and the Healthcare Information and Management Systems Society (HIMSS) found that security funding is the top concern for cash-strapped hospitals.

Health records are valuable to criminals. Large health systems have security teams and budgets; small hospitals often have one IT person and a tight budget. That gap leaves them open to attacks that can expose patient data or shut down systems.

Missing tools and missing people

Money is only part of it. The survey found smaller providers lag in adopting newer security technology. That usually means they lack the staff to run it too.

FinThrive’s point is simple: without proper resources and technology, smaller hospitals cannot fully defend against current attacks. Tools such as AI-driven threat detection and real-time monitoring would help. Budgets often rule them out.

Why the money matters now

Recent attacks that shut down hospital systems showed the stakes, with some diverting ambulances and delaying care for days.

Survey participants want policymakers to recognize the specific problems small hospitals face and steer funding toward them. Partnerships with private security firms could also fill some of the gaps in staff and expertise.

Experts Weigh In

Security and healthcare professionals say funding models need to change. Current reimbursement and grant structures do not reflect what real security costs. Many in the field argue that hospital security is a patient safety issue as much as an IT one.

Where hospitals go from here

The survey shows where help is needed. Outside money, policy support and partners will decide whether small and rural hospitals can protect their records. Otherwise they stay easy targets.

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Frank Jones, CISSP

Frank Jones has loved computers from the age of 13. Frank got his hacking career started when he downloaded a war dialing program that he used to detect dial up modems in his hometown of Chicago. Frank Jones now works as a JAVA coder and cyber security researcher.