1. Introduction: Why SOC 2 & HIPAA matter
The healthcare sector is grappling with a surge in cyber threats, with ransomware and hacking taking center stage. Over the past five years, there has been a dramatic 256% increase in major hacking-related breaches and a 264% rise in ransomware incidents reported to the U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR). In 2023, hacking accounted for 79% of the significant breaches reported to OCR.
These breaches have had a severe impact, compromising the data of over 134 million individuals—a 141% jump from the previous year. Given the escalating cyber risks, covered entities and business associates under the Health Insurance Portability and Accountability Act (HIPAA) must adopt proactive measures to mitigate or prevent the growing wave of cyber-attacks. These attacks not only disrupt operations but also expose sensitive protected health information (PHI), leading to identity theft and financial fraud.
This dual compliance not only safeguards patient data and ensures operational resilience but also streamlines compliance, keeping organizations ahead of regulatory challenges. We will explore these synergies in detail throughout this blog.
2. SOC 2: The foundation for security controls
SOC 2 is a critical compliance framework designed to ensure that organizations implement robust security controls. At its core are the Trust Service Criteria (TSC), which address five key principles: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
These criteria provide organizations with a structured approach to building and managing secure information systems, ensuring compliance with best practices for data handling and infrastructure management.
Addressing common vulnerabilities with SOC 2
SOC 2 offers solutions to several common security challenges. Key areas include:
- Access control: Ensures that only authorized users can access sensitive systems and data, reducing the risks of insider threats and unauthorized access.
- Audit logging and monitoring: Logs are collected and monitored to detect suspicious activities early, helping organizations respond proactively to threats.
- Change management and incident response: Processes are established to manage system changes securely and handle incidents effectively.
Building trust and mitigating risks
Achieving SOC 2 compliance is essential for building trust with stakeholders, including customers, partners, and investors. It assures them that the organization has taken comprehensive measures to protect data and maintain service integrity.
Additionally, SOC 2 plays a vital role in mitigating business risks, such as regulatory non-compliance, operational disruptions, and reputational damage.
Read also: Ultimate guide to SOC 2 compliance documentation
3. HIPAA: Protecting patient data
HIPAA establishes rules to safeguard the privacy and security of PHI. The key components include:
- Privacy rule: Regulates how PHI can be used or disclosed, ensuring patients’ information is protected while still accessible for necessary care and operations.
- Security rule: Focuses on technical, physical, and administrative safeguards to protect electronic PHI (ePHI) from unauthorized access or breaches.
- Breach notification rule: Requires organizations to notify affected individuals, the U.S. Department of HHS, and in some cases, the media, in the event of a breach involving PHI.
HIPAA beyond healthcare
HIPAA extends beyond traditional healthcare providers to life sciences, biotech, and technology companies that handle PHI, including research institutions, software vendors, and cloud providers.
Due to the sensitive data they manage, cybercriminals are increasingly targeting these industries. As a result, even non-healthcare entities must prioritize HIPAA compliance to avoid penalties and protect their reputations.
Risks of non-compliance
Non-compliance with HIPAA can result in severe consequences, including fines of up to $2.07 million per violation category and reputational damage that impacts trust and market value. Organizations beyond healthcare also risk legal liabilities and potential business disruptions from breaches.
Interesting HIPAA guidelines worth considering for employees
Ensuring employee compliance with HIPAA is crucial to safeguarding patient data and avoiding breaches. Here are some key guidelines organizations should implement to align staff behavior with HIPAA requirements:
- HIPAA-compliant email practices
- Employees must use encrypted email services when transmitting PHI.
- Avoid using personal email accounts for any PHI-related communication.
- Always double-check recipients to prevent misdirected emails.
- Social media conduct
- Staff should never share patient information on personal or professional social media platforms.
- Organizations can enforce a social media policy that educates employees on avoiding accidental disclosures (e.g., no patient photos or personal health discussions).
- Proper disposal of PHI
- Employees must ensure paper records containing PHI are shredded or disposed of through secure channels.
- Electronic devices storing PHI should undergo secure data deletion or physical destruction before being discarded.
- Mobile device and remote work policies
- Enforce the use of VPNs and multi-factor authentication (MFA) when accessing PHI remotely.
- Employees should avoid storing PHI on personal devices and ensure devices are locked when not in use.
- Workplace discussions and eavesdropping risks
- Employees should only discuss patient information in private areas to prevent accidental exposure.
- Use headphones for phone calls involving PHI when working in shared spaces.
- Training and incident reporting
- Regular HIPAA training ensures employees stay updated on best practices and evolving regulations.
- Employees must report potential breaches immediately to prevent escalation and comply with breach notification timelines.
Read also: Guardians of healthcare data: Mastering HIPAA audit trail requirements
4. Why SOC 2 + HIPAA = A strategic advantage
The convergence of SOC 2 and HIPAA compliance offers organizations more than just regulatory adherence—it provides a comprehensive strategy to drive operational excellence, foster trust, and position the business for future growth. Here’s why this combination delivers a competitive edge:
Enhanced security and privacy posture
SOC 2’s focus on security, availability, and confidentiality complements and fortifies HIPAA’s strict mandates for PHI. Implementing both frameworks ensures a robust, layered defense, reducing the likelihood of breaches while bolstering overall data privacy and cybersecurity.
Trust and competitive edge
Clients and stakeholders are increasingly demanding evidence of strong data governance. Demonstrating dual compliance builds client trust and reassures investors, partners, and regulatory bodies that the organization can manage risks effectively.
This proactive stance makes your business a preferred choice in sectors where security and compliance are non-negotiable, like healthcare, insurance, and fintech.
Operational synergy
SOC 2 and HIPAA share overlapping requirements—such as access management, encryption, risk assessments, and audit trails—allowing your organization to streamline internal processes and reduce audit fatigue. SOC 2 and HIPAA mapping ensure that controls implemented for one framework align with the other, maximizing efficiency.
A unified compliance approach not only minimizes redundancies but also simplifies reporting and reduces the time and resources required for audits and certifications.
Future-proofing and scalability
As privacy laws such as GDPR, CPRA, and future AI-related regulations continue to evolve, organizations with HIPAA and SOC 2 frameworks are better positioned to adapt quickly. The foundation these frameworks provide ensures that future compliance updates can be incorporated efficiently, fast-tracking regulatory adjustments without disrupting business operations.
Cost optimization and risk mitigation
Integrating HIPAA and SOC 2 compliance drives operational efficiency by aligning security and privacy controls into a single framework. This reduces compliance costs by eliminating duplicated efforts, while also minimizing the risks of non-compliance penalties, reputational damage, and operational disruptions.
Read also: What is the difference between SOC 2 vs HIPAA compliance?
5. Challenges in achieving dual compliance
While the strategic benefits of SOC 2 and HIPAA compliance are significant, achieving and maintaining dual compliance presents several challenges that organizations must navigate effectively.
Complexity of overlapping requirements
SOC 2 and HIPAA share many similar control areas—such as encryption, access controls, risk assessments, and audit trails—but their implementation nuances can differ. Aligning these frameworks without duplication requires careful planning to synchronize policies, processes, and controls. Failure to do so can lead to audit fatigue and operational inefficiencies.
Resource and cost burden
Achieving dual compliance demands significant investments in tools, personnel, and consultants. Organizations must allocate resources for training, audits, gap analyses, and ongoing monitoring. Smaller companies or those with limited budgets may find it challenging to balance the costs of compliance without compromising core business operations.
Coordination across departments
Dual compliance requires collaboration between multiple functions—IT, legal, HR, finance, and operations—each with its own processes and priorities. Establishing effective communication channels and fostering a culture of compliance across all departments is essential, but it can be challenging, especially in large or decentralized organizations.
Evolving threat landscape and regulatory changes
HIPAA and SOC 2 compliance is not a one-time effort. The cybersecurity threat landscape is constantly evolving, and regulatory bodies frequently issue updates or new requirements. Organizations must implement continuous monitoring systems and ensure they stay ahead of changes in laws, such as GDPR, CPRA, and AI-related regulations, which require quick adjustments to compliance frameworks.
Technology and system integration issues
Many organizations use disparate legacy systems and new technologies that may not integrate well. Meeting the technical requirements for SOC 2’s availability and HIPAA’s PHI safeguards often involves reconfiguring IT infrastructure, upgrading systems, or implementing new solutions such as encryption tools, SIEM platforms, and access management systems.
Audit and documentation challenges
Both frameworks require detailed audit trails and documentation. SOC 2 involves external audits that test the effectiveness of controls over time, while HIPAA emphasizes continuous assessments and self-attestations. Preparing for these audits requires precise documentation, standardized reporting procedures, and managing multiple timelines—tasks that can become cumbersome without the right compliance tools.
Cultural and process change management
Implementing dual compliance often requires restructuring business processes and fostering a compliance-first culture. Employees may resist these changes, especially if new controls seem burdensome or interfere with workflows. Managing this change effectively involves comprehensive training, clear communication of compliance benefits, and ongoing support from leadership.
While these challenges are significant, they are not insurmountable. Organizations that adopt integrated compliance platforms, foster cross-functional collaboration, and engage with experienced compliance consultants can effectively navigate these hurdles. The result is a streamlined, resilient compliance strategy that aligns with both business goals and regulatory requirements.
Read also: Understanding the costs of compliance: Beyond the price tag
6. How can Scrut help you achieve your goals
Scrut offers a comprehensive compliance management platform designed to simplify and accelerate your journey toward HIPAA and SOC 2 compliance. Here’s how it empowers your organization to stay compliant, efficient, and ready for growth:
Unified compliance platform
Scrut provides a centralized dashboard to manage both SOC 2 and HIPAA requirements, eliminating the need to juggle multiple tools. This unified platform gives complete visibility into compliance efforts, making it easier to track progress and address gaps seamlessly.
Automated control mapping
The platform leverages automated SOC 2 and HIPAA mapping to align overlapping requirements—such as encryption, access management, and audit trails—across both frameworks, reducing duplication of efforts and ensuring efficiency.
Continuous monitoring
Scrut enables real-time tracking of compliance status, providing proactive alerts and insights into both SOC 2 and HIPAA controls. This allows your team to detect and address potential issues before they impact audits or operations.
Pre-built policy templates
To accelerate compliance processes, Scrut offers pre-built policy templates tailored to HIPAA and SOC 2. These templates reduce the documentation burden, helping you stay compliant with minimal time and effort from your team.
Seamless vendor risk management
The platform integrates vendor risk management tools that monitor the compliance status of your third-party providers, reducing the risks associated with external dependencies and ensuring partners meet your regulatory standards.
Audit readiness
Scrut simplifies audit preparation through automated evidence collection and reporting, making it easy to provide the necessary documentation for auditors. This streamlines the audit process and ensures you’re always ready for assessments with minimal manual intervention.
Access to compliance experts
Scrut provides access to a broad network of industry experts, offering guidance and insights to simplify your compliance journey. Whether you’re facing specific challenges or evolving regulatory requirements, their expertise helps you stay on course.
Scalable solution for growth
Scrut is designed to grow with your organization. As your business scales or adopts new technologies, the platform adapts, ensuring that your compliance efforts remain aligned with new regulations (like GDPR or CPRA) and expanding data environments.
By streamlining compliance management through automation, expert support, and scalable solutions, Scrut empowers your organization to achieve dual compliance efficiently. This allows you to focus on core business goals while staying ahead of regulatory changes and reducing compliance overhead.
Case study
Scrut has played a crucial role in helping Cortico streamline and manage its compliance with HIPAA and SOC 2 standards. By leveraging Scrut’s automated compliance management platform, Cortico could easily track, assess, and document compliance efforts in real time.
This comprehensive approach not only simplified the complexities associated with HIPAA and SOC 2 requirements but also reduced the manual workload, allowing Cortico to focus on delivering quality healthcare services while confidently maintaining compliance and protecting sensitive patient information.
Conclusion: Unlocking new possibilities with SOC 2 + HIPAA
In today’s threat-filled landscape, SOC 2 and HIPAA compliance isn’t just about following rules—it’s about staying secure, building trust, and ensuring smooth operations. Together, these frameworks provide a strong defense against breaches while keeping your organization resilient and ahead of regulatory changes.
While the path to dual compliance can be challenging, platforms like Scrut simplify the process by streamlining tasks and ensuring audit readiness. With the right tools and strategy, organizations can focus on growth, knowing their data is protected and their compliance efforts are solid.
Ready to simplify your journey toward HIPAA and SOC 2 compliance? With Scrut’s all-in-one compliance platform, you can manage both frameworks seamlessly, reduce audit stress, and stay ahead of security risks.
Start your compliance journey today—schedule a demo and see how Scrut can help you stay secure, compliant, and ready for growth!
FAQs
SOC 2 and HIPAA are separate frameworks, each with distinct requirements, so achieving SOC 2 compliance does not make an organization automatically HIPAA compliant. However, SOC 2 and HIPAA share overlapping requirements—such as access controls, encryption, and risk assessments. Through SOC 2 and HIPAA mapping, organizations can align their controls to satisfy both frameworks, streamlining compliance efforts. Together, they help improve data security, privacy, and operational resilience by reducing risks of breaches and non-compliance penalties.
The SOC 2 framework, governed by the AICPA, focuses on ensuring that service organizations maintain strong security, availability, confidentiality, processing integrity, and privacy. It defines a set of Trust Service Criteria (TSC), which provide a structured approach to safeguarding data and systems. SOC 2 compliance helps organizations implement and monitor critical security controls, such as access management, encryption, and continuous monitoring, to reduce the risks of cyberattacks and meet customer expectations for data protection.
The key difference between SOC 2 and HIPAA lies in their scope and focus. SOC 2 focuses on the security of systems and services across industries, addressing areas such as data availability, confidentiality, and privacy. HIPAA, on the other hand, applies specifically to healthcare-related entities and ensures the protection of protected health information (PHI). While both emphasize security, SOC 2 covers broader security principles, whereas HIPAA zeroes in on safeguarding healthcare data and patient privacy.
SOC 1 and SOC 2 serve different purposes. SOC 1 focuses on financial reporting controls, ensuring that service organizations’ systems do not negatively affect their clients’ financial statements. In contrast, SOC 2 focuses on cybersecurity, addressing the controls needed to protect data, systems, and services from threats. While both involve audits and controls, SOC 2 is more relevant for managing security, privacy, and operational risks, making it the preferred framework for organizations focused on safeguarding information assets.
Megha Thakkar has been weaving words and wrangling technical jargon since 2018. With a knack for simplifying cybersecurity, compliance, AI management systems, and regulatory frameworks, she makes the complex sound refreshingly clear. When she’s not crafting content, Megha is busy baking, embroidering, reading, or coaxing her plants to stay alive—because, much like her writing, her garden thrives on patience. Family always comes first in her world, keeping her grounded and inspired.
