In the healthcare industry, third-party vendors are crucial in providing services and technology that enhance patient care, streamline operations, and support healthcare providers. However, this reliance on external partners comes with risks—especially regarding data security, regulatory compliance, and patient privacy. Managing these risks is essential to maintaining the trust of patients and ensuring compliance with healthcare regulations. This is where the ServiceNow Governance, Risk, and Compliance (GRC) suite comes into play.
ServiceNow GRC suite provides healthcare organizations with a comprehensive platform to not only manage third-party risks effectively but also total compliance. It enables healthcare providers to ensure that their partners meet regulatory requirements, adhere to data security protocols, and mitigate risks that could potentially harm patients or disrupt operations.
The Growing Importance of Third-Party Risk Management in Healthcare
Healthcare organizations rely on a variety of third-party vendors, including electronic health record (EHR) providers, cloud service providers, medical device manufacturers, and consultants. While these vendors offer critical services, they also expose healthcare organizations to several risks, including:
- Data breaches and cyberattacks: Third-party vendors may have access to sensitive patient data, making them potential targets for cybercriminals.
- Regulatory compliance: Healthcare organizations are subject to strict regulations such as HIPAA (Health Insurance Portability and Accountability Act), and any non-compliance by third-party vendors can result in costly fines and legal action.
- Operational disruption: Vendors are integral to healthcare operations, and any disruption in their services can negatively impact patient care.
Effectively managing these risks is essential to protecting patient data, maintaining regulatory compliance, and ensuring operational continuity. ServiceNow GRC provides healthcare organizations with the tools needed to monitor, assess, and mitigate third-party risks.
2. Consolidate Systems and Cut Redundant Software Costs
Legacy financial systems often lead to redundancy in tools and platforms, each with its own maintenance and licensing fees. ServiceNow FSO allows companies to consolidate systems, streamlining operations:
- Eliminate Redundant Systems: Identify platforms that ServiceNow FSO can replace, allowing your company to discontinue unnecessary software and reduce licensing fees.
- Optimize IT Infrastructure: Integrating multiple systems can reduce the burden on IT teams, lowering ongoing infrastructure and maintenance costs.
How ServiceNow's TPRM Solution Helps Healthcare Organizations Manage Overall Compliance and Third-Party Risks
ServiceNow GRC suite offers a unified platform that allows healthcare organizations to centralize their overall compliance, and risk management processes, automate workflows, and maintain visibility into third-party activities. Here are several ways it helps manage third-party risks:
- Due Diligence with Third-Party Vendors: The Due Diligence process in SerivceNow’s TPRM solution involves a thorough evaluation of third-party entities to ensure they will comply with your organization’s risk and compliance standards. Onboarding a new (or existing) Vendor for your engagements is important to identify the level of risk they pose to the organization. This process involves categorizing third parties based on their role, relationship, contract costs, and the criticality of their services. Similarly, the same process can occur when Offboarding a new (or existing) Vendor, per engagement.
- Streamlined Vendor Assessments: One of the most critical aspects of third-party risk management is conducting thorough risk assessments of vendors. ServiceNow GRC allows healthcare organizations to automate and standardize the assessment process. Organizations can create customized risk questionnaires and workflows tailored to their specific needs, ensuring that all vendors are evaluated based on consistent criteria. This reduces manual effort and ensures that all assessments are up-to-date and aligned with industry standards.
- Centralized Risk Monitoring and Reporting: ServiceNow GRC provides real-time visibility into third-party risks through its centralized dashboard. Healthcare organizations can track vendor performance, monitor compliance with regulatory requirements, and identify potential vulnerabilities. With real-time reporting, healthcare providers can make informed decisions about vendor relationships and take proactive steps to address risks before they escalate.
- Automated Compliance Tracking: Healthcare organizations are required to comply with various regulations such as HIPAA, GDPR, and HITRUST. ServiceNow GRC simplifies compliance management by automating the tracking and reporting of vendor compliance status. This feature ensures that healthcare providers are always aware of their vendors’ compliance status and can take corrective action when necessary. Automated tracking also helps reduce the risk of non-compliance fines and legal consequences.
- Improved Incident Response: Despite best efforts, incidents such as data breaches or service disruptions can still occur. When they do, ServiceNow GRC helps healthcare organizations respond quickly and effectively. The platform enables automated incident management workflows, allowing healthcare providers to notify stakeholders, investigate incidents, and take corrective actions promptly. By improving incident response times, healthcare organizations can minimize the impact of third-party risks on patient care and operations.
Reducing Third-Party Risk in Healthcare: Best Practices
While ServiceNow GRC offers powerful tools for managing third-party risks, healthcare organizations should also implement best practices to further mitigate risks. Some key best practices include:
- Establish clear policies: Define policies for risk assessments, including when they should be conducted and what criteria will be used for vendor evaluations.
- Conduct regular audits: Periodically assess third-party vendors to ensure continued compliance with data security and regulatory requirements.
- Define clear contractual obligations: Establish clear guidelines regarding data security, compliance, and incident response in vendor contracts.
- Train internal teams: Ensure that employees are aware of the risks associated with third-party vendors and how to identify potential vulnerabilities. To ensure a comprehensive risk review, involve all relevant departments (procurement, IT, legal, etc.) in the due diligence process.
- Continuous monitoring: Regularly monitor third-party activities and performance to identify any changes in risk levels or compliance status. Leverage automation risk assessments, alerts, and reporting as much as possible to reduce manual workloads and improve response times.
- ServiceNow IRM core applications: Integrate TPRM with the rest of the ServiceNow GRC Suite with Policy & Compliance, Advanced Risk Management, and Audit Management.
Partner with GlideFast Consulting to Strengthen Your Healthcare Security
Managing third-party risks in healthcare requires the right tools, expertise, and a tailored approach to ensure compliance and protect patient data. GlideFast Consulting, a ServiceNow Elite Partner, specializes in helping healthcare organizations implement and optimize the ServiceNow GRC suite to address these challenges. Our team of experts understands the unique needs of the healthcare industry and can help you navigate complex regulations while improving your security posture
Get in touch with our team to learn more about how we can help your organization mitigate third-party risks and improve overall healthcare security!
About GlideFast Consulting, A Division of Apex Systems
GlideFast Consulting is an Elite ServiceNow Partner that specializes in delivering exceptional solutions on the ServiceNow platform. We pride ourselves on offering industry-leading services, unparalleled expertise, and a track record of positive customer reviews. Our extensive experience in ServiceNow, combined with our unwavering commitment to customer success, sets us apart from our competitors and enables us to deliver successful outcomes for every client. Whether it's our deep platform knowledge, process-driven standardization, or innovative approach, we are dedicated to providing our customers with the best possible experience. Visit us at www.glidefast.com.
