Healthcare Data Encryption: Compliance & Real-Life Use Cases

Healthcare generates 30% of the world’s data, making it a prime target for cyberattacks.¹ Over 40 million U.S. patient records are compromised yearly, often due to weak security measures. ²

Data encryption has become a critical component of healthcare data security to mitigate the risk of data breaches. We explain how data encryption protects sensitive data, ensures HIPAA and ePHI compliance, and showcase real-world healthcare implementations.

What is healthcare data encryption?

Data encryption in healthcare refers to converting sensitive and confidential patient data into a coded language that can only be accessed by authorized individuals with a decryption key. This means that even if an unauthorized person gains access to the encrypted data, they cannot read or use it without the appropriate key.  For definitions and encryption types, see data encryption: types & importance

What is the importance of data encryption in healthcare?

Approximately 30% of the world’s data volume is generated by the healthcare industry. ³ Healthcare providers and business partners must maintain patient privacy and adhere to HIPAA and other legal obligations, such as the EU’s General Data Protection Regulation (GDPR). Encryption is a critical component of such data security in the healthcare industry. 

By implementing robust encryption methods, healthcare organizations can:

HIPAA, ePHI, and data encryption

The Health Insurance Portability and Accountability Act (HIPAA) requires healthcare organizations to safeguard the confidentiality, integrity, and availability of electronic protected health information (ePHI).

Under the HIPAA Security Rule, organizations must implement technical safeguards, including a mechanism to encrypt and decrypt ePHI when it is stored (“at rest”) or transmitted (“in transit” ⁴ Encryption methods should meet National Institute of Standards and Technology (NIST) guidelines and be selected based on the organization’s risk analysis.

Proper encryption prevents unauthorized access, use, or disclosure of ePHI on devices (such as laptops, mobile phones, or servers) and across communication channels (such as email or messaging). In addition, it can exempt organizations from certain HIPAA Breach Notification Rule requirements, as breaches of encrypted ePHI may not require public disclosure.⁵

Top 5 use cases of data encryption in healthcare with real-life examples

1- Electronic health records (EHRs)

EHRs are designed to improve healthcare delivery quality, safety, and efficiency. They allow healthcare providers to access patient information quickly and easily, regardless of the patient’s location. This makes it easier for healthcare providers to make informed decisions about patient care, avoid errors due to incomplete or incorrect information, and ensure that patients receive the appropriate treatments. (See Figure below)

Real-Life Example

A recent case study demonstrates the integration of homomorphic encryption in a real-world EHR environment. This allows encrypted data to be processed, such as performing analytics or machine learning, without ever being decrypted, significantly enhancing privacy while maintaining functionality. The study reports on computation efficiency, system performance, and the practical challenges of deployment. ⁶

2- Medical devices 

More medical equipment, including insulin pumps and pacemakers, is being connected to the Internet and other networks. Encrypting data can help secure what is transmitted between these devices and other systems, ensuring that patient information is protected from unauthorized access.

Real Life Example

While not widely publicized deployments exist, research highlights how vulnerabilities in insulin pumps (e.g., remote control via unencrypted wireless channels) led to improvements. One document examines the feasibility of applying AES-based cryptographic protection to wireless insulin pump communications, proposing improved energy‑efficient, secure protocols.⁷

3- Remote patient monitoring (RPM)

Remote patient monitoring (RPM) is a healthcare delivery model that uses technology to monitor patients’ health remotely. It enables healthcare providers to track patients’ vital signs, symptoms, and other health data outside of traditional healthcare settings, such as hospitals and clinics. 

RPM typically involves wearable devices, sensors, or mobile applications to collect and transmit data to healthcare providers. The collected data can include various patient health information, such as:⁸

• blood pressure,
• heart rate,
• blood sugar levels,
• and medication adherence.

Encryption can be used to protect sensitive data that is transmitted between patients and healthcare providers, ensuring that patient privacy is maintained.

Real Life Example

Philips HealthSuite is a cloud-based platform that collects data from various remote monitoring devices such as blood pressure cuffs and wearable heart monitors. During the COVID-19 pandemic, RPM solutions were employed widely to monitor chronic conditions like heart disease or diabetes, reducing hospital visits.⁹

A real-world implementation involved using RPM to monitor patients recovering from heart surgery, reducing hospital readmissions by enabling doctors to adjust medications and treatment plans based on real-time data collected from home.

4-Telehealth

Telehealth, also known as telemedicine, allows patients to receive medical care, consultancy, and support from healthcare providers without the need to visit a physical clinic or hospital. Telehealth services can be delivered through various technologies, such as video conferencing, remote monitoring, mobile health apps, and messaging platforms.

Real-life Example

Before the COVID-19 pandemic, only 11% of consumers reported using it in 2019. After the pandemic, it reached 76%. ¹⁰ These technologies allow patients to communicate with their healthcare providers in real time, share health information, and receive remote diagnosis and treatment. Encryption can help protect the data transmitted during telehealth sessions, ensuring that patient information remains confidential and secure.

5- Healthcare data analytics

Healthcare data analytics analyzes and interprets large sets of healthcare data to extract meaningful insights and inform decision-making. It involves using statistical and computational techniques to identify patterns and trends in healthcare data and to draw conclusions about patient outcomes, population health, and healthcare delivery. 

Healthcare organizations increasingly use data analytics to gain insights into patient health and healthcare operations. Encryption can help protect this data from unauthorized access, ensuring patient privacy.

Real Life Example

OpenSAFELY, a secure analytics platform developed through collaboration between the University of Oxford and the London School of Hygiene & Tropical Medicine, provides an example.

The platform enables researchers to analyze large-scale NHS patient data (covering approximately 58 million patients) without exposing individual records. The system achieves this by integrating only aggregated results for researchers, thus preserving privacy and ensuring compliance with data protection standards.¹¹

Benefits of data encryption in healthcare

Protecting sensitive patient information

Healthcare records contain personal identifiers, medical histories, and financial details. Encryption converts this information into unreadable code that can only be unlocked with a decryption key, preventing identity theft, medical fraud, and other misuse. For example, if a stolen laptop contains encrypted data, the information remains inaccessible without the key.

Regulatory compliance

HIPAA in the U.S., GDPR in the EU, and other regulations require technical safeguards for health data. Encryption meets these requirements and can reduce penalties if a breach occurs. Demonstrating encryption in audits also helps maintain accreditation and insurer trust.

Reducing breach impact

Data breaches can lead to lawsuits, fines, and loss of patient trust. Even if attackers bypass other security measures, encrypted data is unreadable without the correct key. Under HIPAA’s Breach Notification Rule, encrypted ePHI may not require public disclosure, reducing reputational and legal damage.

Secure data sharing

Healthcare providers often share patient information with specialists, laboratories, or patients themselves. Encryption ensures that data transmitted via email, secure portals, or connected devices remains confidential during transfer, blocking interception by unauthorized parties.

For further reading, check Generative AI Healthcare Industry: Benefits, Challenges, Potentials

Maintaining data integrity

Beyond confidentiality, encryption helps ensure data remains accurate and unaltered. Any attempt to modify encrypted records without authorization corrupts the data, alerting administrators to tampering. This is critical for medical decisions, where even small changes to a record could alter treatment plans.

Cloud and mobile security

Cloud-based EHR platforms and mobile health apps increase accessibility but also risk exposure. Encryption protects stored and transmitted data in these environments, even if a cloud provider suffers a breach or a device is lost. For instance, mobile device management tools can enforce encryption to secure data on staff smartphones.

Supporting business continuity

During disasters, cyberattacks, or system failures, encrypted backups allow healthcare providers to restore data without exposing it to unauthorized access. Storing decryption keys separately from backups ensures data remains both recoverable and secure.

External Links

• 1. RBC Capital Markets | Navigating the Changing Face of Healthcare Episode.
• 2. The biggest healthcare data breaches of 2021 | Healthcare IT News.
• 3. RBC Capital Markets | Navigating the Changing Face of Healthcare Episode.
• 4. U.S. Department of Health & Human Services, “The Security Rule”
• 5. Breach Notification Rule | HHS.gov. US Department of Health and Human Services
• 6. Enhancing Healthcare Data Security with Homomorphic Encryption: A Case Study on Electronic Health Records (EHR) Systems | Revista de Inteligencia Artificial en Medicina .
• 7. https://cosicdatabase.esat.kuleuven.be/backend/publications/files/conferencepaper/2604
• 8. Remote Patient Monitoring 2023-2033: Technologies, Markets and Opportunities: IDTechEx. IDTechEx
• 9. https://www.philips.com/c-dam/corporate/security/master/mh01/Philips-Security-with-HS-RSE-v6.download.pdf
• 10. Telehealth Solutions - Siemens Healthineers.
• 11. Healthcare Data Encryption Based on Secure AI Model with Computational Analysis Using Machine Learning Algorithms | SpringerLink. Springer Nature Switzerland