Healthcare is currently a hot topic. New legislation, mandates to digitize information and more consumer familiarity with technology means there are lots of opportunities for new ideas and profit. A number of healthcare-as-a-service offerings are appearing in the market, but  are still significant questions and concerns about taking healthcare to the cloud.

Cloud security, cloud encryption and HIPAA requirements top the list of concerns from those considering using a healthcare software-as-a-service (SaaS). These items are closely followed by cost. The market wants affordable solutions that are easy to use, which are areas where the cloud’s pay for you consume model excels. However, when it comes to security things aren’t so obvious.

Healthcare SaaS solutions require high levels security, and that doesn’t just mean relying on security at the infrastructure layer. Medical institutions must make absolutely sure that SaaS providers comply with the Health Information Portability and Accountability Act (HIPAA) and its sister regulations concerning the Health Information Technology for Economic and Clinical Health Act (HITECH). For healthcare SaaS solutions to thrive, providers must be able to ensure that only individuals and those they grant access to, can view private health data. In many cases, this restricts even employees of the SaaS from viewing the information.

There is trepidation, but cloud technology has begun replacing legacy systems. Organizations that have made the effort to embrace cloud technology are finding it’s reducing treatment times and making it easier to share information across medical providers. The market is growing, but it pushing the boundaries of what’s proven with cloud security. Research and Markets predicts the CAGR of healthcare will grow 20.5% between 2010 to 2017. We will likely see major cloud providers introduce more solutions targeted specifically at the healthcare providers as the market matures.