Digital Transformation

Healthcare organizations are facing an unprecedented cybersecurity crisis. Headlines often focus on patient data breaches, but a quieter threat is emerging: healthcare HR departments. Employee records contain personally identifiable information (PII), including Social Security numbers, payroll details, background checks, and health insurance claims. For attackers, this data is just as valuable as patient information.

According to HIPAA Journal’s analysis of HHS OCR reports, there were 739 significant healthcare breaches in 2024, affecting 276.8 million records. By comparison, there were 725 significant breaches in 2023. The UnitedHealth Change Healthcare attack alone affected 190 million Americans, marking the single largest healthcare data breach in U.S. history (Reuters; HIPAA Journal).

The financial toll is staggering. IBM reports that the average cost of a healthcare breach was $9.77 million in 2024, the highest for any industry for the fourteenth consecutive year. In 2023, that figure was even higher at $10.93 million.

For healthcare HR professionals managing employee records and systems adjacent to the EHR, this creates a dual challenge: protect sensitive workforce information and maintain operational compliance in the face of escalating cyber risk.

The Healthcare Cybersecurity Crisis by the Numbers

• 67 percent of healthcare organizations were hit by ransomware in 2024, up from 34 percent in 2021 (Sophos)
• 53 percent of those victims paid ransom demands to regain access, often including HR and payroll systems (Sophos)
• The average healthcare employee receives 96 fraudulent emails per quarter (CrowdStrike)
• Business Email Compromise attacks grew 473 percent in 2024, frequently targeting HR with fake payroll updates or vendor invoices (CrowdStrike)
• 66 percent of healthcare providers say insider breaches are more likely than external attacks (Netwrix)

Why Healthcare HR Is a Prime Target

Healthcare HR teams sit at the intersection of high-value data and broad system access. They manage not just payroll and employee records, but also health insurance claims, occupational health information, and workers’ compensation files, which overlap with clinical and EHR systems.

This overlap creates a stepping stone: when HR credentials or systems are compromised, attackers can sometimes move laterally into patient-facing environments. This gap in security makes HR both a target and a potential gateway into more sensitive systems.

Key vulnerabilities include:

• Rich PII: Social Security numbers, banking details, medical claims, and background checks
• Broad system access: Permissions across HRIS, payroll, credentialing, and sometimes EHR platforms
• Third-party exposure: Vendors for payroll, benefits, and staffing multiply entry points
• Compliance blind spots: Paper files and legacy systems often sit outside IT security controls
• Hybrid work risks: Remote access expands the attack surface significantly

Five Critical Threats Targeting Healthcare HR in 2025

1. Ransomware as the new normal

Ransomware hit 67 percent of healthcare organizations in 2024, and over half paid to regain access. Payroll, scheduling, and credentialing systems are frequent victims.

2. Phishing and Business Email Compromise

Healthcare employees receive an average of 96 fraudulent emails per quarter, and Business Email Compromise (BEC) attacks increased by 473 percent in 2024, often targeting HR with fake payroll updates and vendor invoices (CrowdStrike).

3. Insider and identity-based threats

The Netwrix 2025 report found that insider threats and identity compromise now drive many of the most severe breaches in the healthcare industry. Elevated HR permissions pose a significant risk.

4. Vendor and Third-Party Access Risks

Healthcare organizations rely on vendors for payroll, benefits administration, staffing, and credentialing. Each connection expands the potential attack surface.

The Netwrix 2025 Healthcare Cybersecurity Report found that identity-based compromises are increasingly tied to third-party accounts and excessive permissions. Once attackers gain access through a vendor or compromised identity, they can move laterally into HR and even EHR systems.

For HR leaders, this means vendor access requires the same strict controls as internal accounts, including:

• Limiting permissions to the minimum necessary
• Requiring multi-factor authentication for all vendor logins
• Regularly auditing and deactivating unused vendor accounts
• Monitoring access patterns for unusual activity

5. Compliance blind spots

HIPAA requires the protection of electronic PHI, which may include employee health benefits and occupational health records. Yet many HR systems remain outside formal IT security programs, leaving audit gaps and regulatory risk.

Meeting HIPAA and Healthcare HR Compliance

HIPAA security and privacy rules apply to employee health-related data and EHR-adjacent files. DynaFile supports compliance by:

• Encrypting HR files at rest and in transit
• Applying granular role-based access controls
• Maintaining comprehensive audit trails for every file action
• Automating retention policies so records expire or archived on schedule

These capabilities give HR leaders confidence during audits while reducing risk exposure from stale or unsecured files.

Why DynaFile Is the Right Solution for Healthcare HR

Generic cloud storage tools cannot provide HIPAA-level protections or healthcare-specific compliance features. DynaFile is built for HR teams in hospitals, health systems, and teaching institutions that must balance efficiency with rigorous compliance.

Key DynaFile Capabilities and Benefits for Healthcare HR

Key Capability	Benefit for Healthcare HR
Granular access control & role-based permissions	Only the right people access the right files, reducing insider risk
Comprehensive audit trails and activity logs	Prove compliance readiness and investigate anomalies
Scan-to-cloud automation + document intelligent filing	Turn physical files into digital, searchable, secure records
DocuSign / Adobe Sign / PandaDoc integration	Seamless signing, tracking, and filing
Automated retention, purging, version control	Automated retention, purging, and version control
Encrypted sharing & secure document links	No need to send insecure attachments
HIPAA-level cloud security architecture	Built-in protections meeting healthcare security expectations

Proven Results Across Large Organizations

• MorningStar Senior Living (healthcare and senior care, 3,200+ employees): cut paper files by over 90 percent, eliminated entire file rooms, and improved audit readiness
• BioTelemetry (nationwide employer network): 5x faster file access compared to legacy systems
• NANA North (support services with 3,000+ employees): reduced paper by 95 percent and achieved 99 percent time savings in onboarding and file management

FAQs

Secure Your Healthcare HR Document Management System Today

Healthcare HR teams are on the front lines of cybersecurity. Employee records are now as valuable to attackers as patient files, and the consequences extend from compliance fines to direct risks to patient safety.

By modernizing your HR document workflows, you can protect sensitive information, maintain audit readiness, and keep operations running smoothly.

Ready to secure your healthcare HR document management system? Schedule a DynaFile demo to learn how our HR-focused healthcare solution can enhance your security posture and integrate seamlessly with your existing technology ecosystem.

Healthcare HR leaders face unique challenges in managing employee records. Hospitals, long-term care facilities, and teaching hospitals must meet strict compliance rules while managing high volumes of staff records. Many HR teams still rely on paper files or outdated digital systems. The result is wasted time, higher risk, and added stress during audits.

The weight of paper-heavy HR systems

HR in healthcare means dealing with I-9 forms, payroll documents, certifications, licenses, benefits enrollment, and policy acknowledgments. In long-term care or academic medical centers, the workload grows with rotating staff, residents, and students. Paper systems create several problems:

• Records are scattered across departments
• File retrieval takes too long
• Missing or expired documents create compliance gaps
• Physical storage is costly and difficult to secure

When audits arrive, HR staff often spend days tracking down records and hoping nothing is lost. This reactive cycle increases the chance of penalties and damages confidence in HR’s ability to support the organization.

Compliance risks in healthcare HR

Healthcare HR teams operate under overlapping regulations such as HIPAA, OSHA, and FLSA. A single missing or misfiled document can create compliance issues. For example, failing to keep I-9s for the correct retention period may trigger fines. Licenses or certifications that expire unnoticed can put patient care and accreditation at risk. For teaching hospitals that manage student records, DynaFile’s secure cloud storage, robust access controls, detailed audit trails, encryption, and retention tools help support FERPA compliance standards.

Legacy digital systems are not enough

Some healthcare organizations have moved away from paper but still rely on network drives or generic cloud storage. These systems lack HR-specific indexing, retention automation, and compliance reporting. They may store documents, but they do not make it easier to prove compliance during an audit. They also leave security gaps. HR files include Social Security numbers, payroll details, and other identifiers. Without encryption, access controls, and audit trails, these systems expose employee data to unnecessary risk.

The cost of inefficiency

Struggling with document management costs more than time. Research shows that employees spend an average of two hours each day searching for documents in disorganized systems. For HR in healthcare, that translates into slower onboarding, staff frustration, and higher turnover. In organizations with thousands of employees, the financial impact is significant.

How modern document management helps

A secure healthcare HR document management system addresses these challenges by:

• Converting paper files into digital records with scan-to-cloud automation
• Using custom indexing to retrieve files by employee, department, or credential
• Enforcing retention schedules automatically to prevent expired records from slipping through
• Tracking every file action with audit trails for accountability
• Applying role-based permissions so only authorized staff can access sensitive records

These features reduce compliance risks while improving efficiency. HR leaders gain peace of mind knowing that audits can be completed in hours instead of days.

Case study proof

MorningStar Senior Living reduced paper files by more than 90 percent after moving to DynaFile. “Our biggest cost savings is in time saved. We have high-paced roles in each location, and shaving minutes off tasks is monumental” said Chris Livesay, Chief Human Resources Officer.

BioTelemetry improved audit readiness by consolidating legacy files into one secure system. “Using DynaFile is five times faster than our previous mess of a filing system. It’s been really great” said Jill Purcell, HR Analyst.

These results show that modern document management systems are not only about storing files but also about creating resilience and compliance readiness.

The HR takeaway

Healthcare HR teams struggle with document management because paper systems and legacy tools cannot keep up with compliance, security, and efficiency needs. By adopting a healthcare-ready HR document management system, organizations can protect sensitive records, save time, and stay audit-ready.

For healthcare HR leaders, DynaFile provides secure recordkeeping, compliance oversight, and faster access to employee files. It replaces manual filing with digital workflows that save time, reduce risk, and improve audit readiness.

Frequently Asked Questions about Healthcare HR Document Management

Is your HR team still struggling with outdated document management?

Schedule a demo today to see how DynaFile simplifies compliance and keeps healthcare records secure.

Healthcare is a prime target for ransomware. In 2023, the Department of Health and Human Services recorded 725 large healthcare data breaches, each involving 500 or more records. That is nearly two a day, and the highest number since federal reporting began. Hacking and ransomware incidents were responsible for 81 percent of those breaches and exposed more than 259 million records.

Most headlines focus on patient care systems and electronic health records. Yet HR departments in healthcare organizations are just as vulnerable. Employee files contain Social Security numbers, payroll information, credentials, and even protected health information. A compromised HR filing system can lead to identity theft, financial fraud, compliance penalties, and long-term reputational damage.

Why healthcare HR files are a prime target

• High-value data such as identifiers and banking details
• Compliance risks tied to HIPAA, OSHA, and employment laws
• Reliance on paper or outdated digital systems with limited security
• Expanded risk from hybrid and remote access points

How a healthcare document management system strengthens defense

A secure document management system for healthcare industry HR files provides layered protection that outdated filing systems cannot.

Key capabilities include:

• Granular access permissions so only authorized staff can view or edit files
• Encryption in transit and at rest to protect against interception
• Audit trails that log every action for compliance reviews and accountability
• Automated retention rules that securely archive or dispose of expired records
• Encrypted external sharing that replaces risky email attachments

Proof from healthcare organizations

Healthcare providers using DynaFile have strengthened security while improving efficiency.

MorningStar Senior Living eliminated paper files and gained secure role-based access across multiple facilities. Their digital transformation reduced manual handling while ensuring compliance. Read the Case Study

BioTelemetry centralized HR records for thousands of employees using DynaFile. The move improved access control and ensured HIPAA-level security. Read the Case Study

These examples show how a healthcare document management system not only defends against cyber threats but also strengthens compliance readiness.

Frequently Asked Questions about Healthcare HR Document Management and Ransomware

The HR takeaway

Ransomware threats in healthcare are increasing. HR leaders must treat employee record security with the same urgency as patient records. A cloud-based electronic document management system for healthcare simplifies audits, enforces compliance, and protects sensitive employee files.

DynaFile is built for HR in high-risk industries such as healthcare. With advanced security controls, audit-ready reporting, and seamless integrations, it ensures employee records remain secure and accessible only to the right people.

Is your healthcare HR document management ready for today’s ransomware threats?

Schedule a demo today to see how DynaFile protects your workforce files.