Third-Party Risk Management in Healthcare IT: Working with Contractors

By Madalyn Manning, Talent Management Director at Revuud

Healthcare delivery organizations are under immense pressure to innovate quickly while keeping patient data secure and operations compliant. To meet these demands, many rely on third-party IT contractors for critical projects like EHR upgrades, cloud migrations, and AI pilots.

But with opportunity comes risk. Without a structured approach to third-party risk management, hospitals expose themselves to compliance failures, PHI breaches, financial penalties, and reputational damage.

That’s where a proactive strategy makes the difference—ensuring organizations can move fast without compromising security.

Key Takeaways

• Healthcare systems increasingly depend on third-party IT contractors to drive major technology initiatives.

• Poorly managed contractor relationships can lead to compliance gaps, PHI exposure, and costly data breaches.

• Strong third-party risk management addresses oversight, compliance checks, onboarding/offboarding, and continuous monitoring.

• Platforms like Revuud give healthcare leaders visibility, control, and confidence when engaging IT contractors.

Why Third-Party Risk Management Matters in Healthcare IT

Healthcare is under intense pressure to innovate. Hospitals need specialized IT expertise for projects like:

• EHR migrations and optimization

• AI and analytics rollouts

• Cybersecurity enhancements

• Cloud migrations

Because these projects are often time-sensitive and complex, health systems lean heavily on third-party IT contractors and consultants.

But this reliance introduces new risks:

• Regulatory non-compliance (HIPAA, HITECH, HITRUST)

• Patient data exposure due to weak vendor controls

• Financial penalties for failing audits

• Reputational damage if breaches occur

That’s why third-party risk management is no longer optional…it’s essential.

Top Compliance & Security Challenges

When working with contractors, healthcare systems face unique challenges:

1. Vendor oversight gaps: Contractors often come in through staffing firms, leaving limited visibility into who they are and what systems they access.

2. Onboarding/offboarding delays: Inconsistent credentialing and access removal create security holes.

3. Shadow IT risk: Without standardized vetting, contractors may introduce tools or processes that fall outside IT compliance.

4. Audit readiness: With multiple vendors in play, proving compliance across contractors is time-consuming and error-prone.

These issues highlight why traditional vendor risk management frameworks aren’t enough in healthcare. Leaders need a model tailored to IT contractors.

Best Practices for Third-Party Risk Management in Healthcare IT

A proactive approach to third-party risk management helps mitigate these risks while still enabling speed.

Centralize contractor oversight

Keep all IT consultant engagements in one platform for visibility into who is working, where, and with what access.

Standardize vendor risk assessments

Evaluate every contractor before onboarding for HIPAA, HITRUST, and security controls.

Enforce IT compliance checkpoints

Make compliance part of the process—not an afterthought—by requiring documentation upfront.

Automate onboarding & offboarding

Use technology to issue and revoke system access quickly, minimizing risk exposure.

Monitor continuously

Regularly audit access logs, certifications, and project data to stay ready for regulators.

The Role of Technology Platforms

Manual approaches, like relying on staffing firms or tracking contractors in spreadsheets, leave too much room for error.

Platforms like Revuud give healthcare systems a better way to manage risk:

• Real-time visibility into all IT contractors working across projects.
• Pre-vetted consultants with compliance checks built into the process.
• End-to-end lifecycle management for onboarding, offboarding, and payments.
• Audit-ready reporting to simplify compliance documentation.

By combining technology with service, Revuud enables healthcare leaders to move faster without compromising on security or compliance.

Who Benefits From Strong Third-Party Risk Management?

• CIOs & CTOs: Balance innovation with operational security.
• CISOs: Protect PHI and enforce healthcare security standards.
• Compliance & Legal Teams: Ensure contracts and audits withstand scrutiny.
• IT Directors & Hiring Managers: Fill roles quickly with confidence in compliance.

Conclusion

Healthcare IT depends on third-party contractors, but unmanaged risk can put patients, data, and entire organizations at stake. By prioritizing third-party risk management, health systems can maintain compliance, strengthen security, and still deliver projects on time.

Revuud makes this possible by combining a vetted talent pool with a technology platform that brings oversight, speed, and transparency to every engagement.

See how Revuud can help your healthcare system simplify vendor risk management for IT contractors. Request a demo today.

FAQs

Q: What is third-party risk management in healthcare?

A: It’s the process of identifying, assessing, and controlling risks associated with external vendors and IT contractors who have access to patient data, systems, or sensitive workflows.

Q: How can hospitals manage IT contractor compliance?

A: By centralizing oversight, enforcing standardized risk assessments, automating onboarding/offboarding, and continuously monitoring contractor activity.

Q: What’s the difference between vendor risk management and third-party risk management?

A: Vendor risk management is broader (any external vendor). Third-party risk management often focuses on individuals and contractors—critical in healthcare IT where consultants work directly in core systems.

About the Author

Madalyn Manning is the Talent Management Director at Revuud, where she leads the vetting process for IT consultants supporting healthcare systems. She specializes in ensuring organizations have access to trusted, compliant talent for critical technology initiatives.