The necessity of cybersecurity in healthcare mergers and acquisitions

IT vulnerabilities during healthcare mergers and acquisitions

The landscape of healthcare is in a precarious position. Spending cuts from the federal government, and changes in the global trade landscape, are leading to economic uncertainty in the healthcare industry. This could result in increased partnerships going forward, according to a recent report.¹

As healthcare organizations increasingly pursue mergers and acquisitions (M&A) to navigate these changes, coordinate care, and modernize platforms, they usher in a new set of vulnerabilities. Combining systems, clinical applications, and sensitive patient data exposes organizations to heightened cybersecurity risks—making threat assessment not just necessary, but mission-critical.

Healthcare mergers and acquisitions create unique cyber risk conditions

Historically, healthcare mergers and acquisitions tend to be punctuated by periods of instability. Large enterprises often have complex and highly customized IT infrastructures, and merging these with the systems of an acquired company can be a long and arduous process.² This leaves IT environments in a precarious state of transition that attackers can easily spot.

The realities of potential resource constraints and diverted attention introduce risk factors ripe for exploitation:

• Control misalignment: Merging entities may have vastly different security postures—from state-of-the-art endpoint detection to unsupported legacy firewalls
• Shifting network boundaries: Integrating systems before governance alignment increases exposure
• Operational distractions: IT staff often prioritize integration logistics over monitoring for threats
• Credential management gaps: Rapid role changes and staff turnover increase the risk of orphaned or misused access
• Increased adversary interest: Cyber actors often capitalize on M&A announcements or system transitions

Research shows the risk of data breach doubles in the year before and after a healthcare M&A deal, rising from 3% to 6%—underscoring the elevated exposure during transition periods.³

Embedding cybersecurity in mergers and acquisitions

Cybersecurity diligence should be treated as a core pillar—on par with legal, financial, and operational streams.

An effective strategy for cybersecurity in mergers and acquisitions includes:

• Evaluation of technical hygiene; patching, identity control, endpoint protection
• Incident and breach history review, including unresolved vulnerabilities
• Assessment of risk exposure from vendor platforms, cloud services, and medical devices
• Compliance validation; Health Insurance Portability and Accountability Act (HIPAA), Health Information Technology for Economic and Clinical Health (HITECH), and state privacy frameworks
• Assessment of staff training, awareness, and access governance
• Evaluation of cyber insurance coverage and liabilities

Well-executed due diligence can shape deal terms, valuation, and post-close commitments—protecting both care continuity and enterprise integrity. In healthcare mergers and acquisitions, nothing could be more important.

The costs of cyber incidents in healthcare

With our heavy reliance on technology in nearly every industry, data breaches have unfortunately become a common occurrence. Certain businesses are targeted more often than others, like financial service institutions (banks, credit unions, etc.) and health insurance companies because they have high volumes of valuable data for hackers to steal.

Over the past decade, healthcare has consistently been one of the most expensive industries in terms of data breaches, with costs significantly higher than the global average.⁴ For healthcare mergers and acquisitions, those risks are even higher. Cybersecurity could end up being a primary factor in what determines the success or failure of the deal. With stakes so high, cybersecurity must shape—not just follow—the M&A playbook.

Third-party cyber experts can help during healthcare mergers and acquisitions

In healthcare, IT landscapes are complex, highly regulated, and fast-changing. Getting cybersecurity right during M&A requires expertise beyond day-to-day operations. Often, those at the center of deal team activities struggle with schedule constraints and competing priorities for the post-deal transition. A third-party cybersecurity service provider or consultant can help healthcare organizations navigate this vulnerable time.

Trusted external cybersecurity advisors bring:

• Independent assessment free from internal bias or blind spots
• Rapid diagnostic capabilities informed by threat and industry data
• HIPAA- and HITECH-aligned compliance frameworks tailored to healthcare M&A
• Clean-room planning, shared-services design, and secure integration scenarios
• Multi-phase cyber roadmaps aligned with business transformation and governance goals

This approach to third-party input turns cyber diligence from a checkbox into a strategic accelerant, and can improve overall cyber posture beyond the context of M&A.

Sustaining cybersecurity in mergers and acquisitions

As the merger or acquisition rolls out, it is important that cybersecurity best practices remain in effect and are observed post-close integration. Transition periods are when organizations are most vulnerable, and so vigilant cybersecurity is a must.

Post-close priorities include:

• Revalidating access permissions and privileged account controls
• Implementing security information and event management (SIEM) and behavior monitoring across newly merged systems
• Consolidating cybersecurity governance, policies, and escalation workflows
• Running incident-response simulations, penetration testing, and tabletop exercises in the combined environment
• Maintaining expert oversight through the first 90–180 days post-close

This ensures the deal remains signed and secure.

Cybersecurity in healthcare mergers and acquisitions isn’t optional, it’s essential

In healthcare mergers and acquisitions, cyber resilience is a strategic differentiator—not a cost center. Healthcare companies that prioritize cybersecurity from the outset are better positioned to protect their assets, maintain their reputation, and achieve long-term success.⁵ Embedding threat assessment and cyber diligence into every phase of the deal protects value and protects patients.

Cybersecurity risks during healthcare M&A are too significant to leave unmanaged—and too complex to address without experienced guidance. CAI’s cybersecurity professionals bring healthcare-specific expertise, M&A-aware frameworks, and integration-led intelligence to every stage of your transaction.

CAI can help you:

• Perform deep cyber due diligence aligned with HIPAA and healthcare best practice
• Identify latent vulnerabilities, vendor risks, and integration friction points
• Design secure Day One integration roadmaps
• Maintain vigilance and continuity through the first 180 days post-close

To learn more about how CAI can help you navigate M&A with a solid cybersecurity foundation, fill out the form below.