Cloud Computing in Healthcare: How Technology is Improving the Industry

In this article, we’ll dive into what cloud computing technology in healthcare is, how it works, including cloud migration, and why it’s so important. You’ll learn about the main components of cloud computing, the different deployment models, and the key benefits it brings.

If you're still not sure how the cloud can improve your healthcare services, you’re in the right place!

Key takeaways

• Cloud adoption in the healthcare sector has transformed data management, enhancing accessibility, collaboration, and efficiency across the entire healthcare system.
• Cloud-based solutions offer healthcare organizations significant cost savings through flexible, pay-as-you-go models, eliminating the need for expensive on-premises infrastructure.
• Cloud systems implement robust security measures, including data encryption and compliance with regulations like HIPAA, to protect sensitive patient information, ensure data privacy, and secure the entire healthcare system. But there are still some major security concerns and cyber security risks.
• By enabling real-time access to patient data and supporting telemedicine, cloud computing allows healthcare professionals to make informed decisions quickly and access efficient data management, ultimately improving patient care and patient outcomes.
• Implementing cloud computing supports the integration of advanced technologies like artificial intelligence and big data analytics, driving innovation and enabling healthcare providers to analyze vast amounts of data for better treatment strategies.
• While cloud computing offers numerous benefits, healthcare institutions must address health data migration and data recovery challenges, integration with legacy systems, and potential security risks to fully leverage cloud technology.

What Is Cloud Computing in Healthcare?

Cloud computing in healthcare is all about using remote servers – stored online – to manage, process, and store healthcare data. It moves away from old-school on-site systems and makes it easier for healthcare providers to access and share medical records, apps, and services quickly and securely. The cloud is flexible, safe, and cost-efficient, supporting everything from patient care to daily administrative tasks and enabling healthcare providers to analyze vast amounts of data efficiently.

Key components of cloud computing in healthcare

Let’s take a look at the main components that form the capabilities of cloud computing for healthcare.

Cloud storage

Instead of relying on physical storage systems, cloud storage technology enables healthcare providers to securely keep patient records, medical images, and other critical data in centralized, remote databases. This makes it easier to access and share data across different departments or even multiple healthcare facilities.

Data processing and analytics

Cloud platforms allow healthcare organizations to process and analyze huge amounts of data, from health records to diagnostic information. With tools like artificial intelligence and machine learning, healthcare providers can unlock insights that improve patient care, predict outcomes, and help in creating personalized treatment plans.

Collaboration tools

Cloud-based tools make it easy for healthcare professionals to communicate and collaborate in real-time, no matter where they are. This is especially helpful when specialists need to work together on patient care from different locations.

Integration with EHR and EMR systems

Cloud computing in the healthcare industry integrates smoothly with Electronic Health Records (EHR) and electronic medical records (EMR) systems. This ensures healthcare professionals have instant access to up-to-date patient information, improving decision-making and healthcare delivery by providing better care.

The statistics behind the shift to healthcare cloud computing

Now, let’s move to a statistical overview of cloud computing in the medical field.

• The global healthcare cloud computing market was valued at $46.1 billion in 2023. Today, experts predict that it will grow to $53.8 billion by 2024, with an impressive 17.5% compound annual growth rate (CAGR) over the next five years.
• In the U.S. alone, the market of cloud technology in healthcare is expected to grow from $12 billion in 2024 to $34.4 billion by 2033.
• Some reports indicate that over 80% of healthcare executives have already deployed cloud-based applications. Most of them are planning to migrate their legacy systems to cloud platforms like AWS, Microsoft Azure, and Google Cloud in the next two years.
• 90% of healthcare providers adopt cloud-based solutions to streamline operations, reduce costs, and enhance patient care.

As you can see, the cloud computing healthcare market is experiencing rapid growth, and the main reason is the fast adoption of cloud solutions by healthcare organizations worldwide.

Types of Cloud Computing in Healthcare

Medical cloud computing offers various models and deployment options. Each of them can be the source of the flexibility, security, and scalability healthcare providers need to manage data effectively. But only if you choose the most suitable option.

Cloud computing and healthcare share different connections and services. Here are the different types of cloud computing, categorized by deployment, cloud features, and service distribution. You can make your choice based on the functionality and approaches they offer.

Cloud sharing

There are two main options you can choose in this case, which also provide remote access to critical resources.

Multi-tenant cloud

In a multi-tenant cloud, multiple healthcare organizations share the same cloud infrastructure. However, each organization’s data and applications are isolated and secure from others. This is a cost-effective option for smaller or medium-sized organizations looking for a secure yet affordable cloud solution.

Single-tenant cloud

As the name implies, a single-tenant cloud provides exclusive access to the infrastructure for a single healthcare organization. While this option tends to be more expensive, it offers enhanced control over the environment, including greater security and customization options.

Deployment models

In this case, we have four main options.

Private cloud

A private cloud is a dedicated infrastructure designed for a single healthcare organization, utilizing various cloud technologies to enhance security and efficiency. It offers enhanced data privacy and control, so it is ideal for storing sensitive patient records and clinical data. This model ensures compliance with healthcare regulations such as HIPAA, while allowing customization to fit specific needs and workloads.

Community cloud

A community cloud is shared by multiple healthcare organizations that have similar goals or regulatory requirements. It allows institutions within a specific sector, such as hospitals or research groups, to collaborate on shared resources while maintaining data security and regulatory compliance.

Public cloud

In a public cloud, resources are owned and operated by a third-party provider and shared among various healthcare organizations. This model provides cost efficiency and scalability, and is suitable for storing less sensitive healthcare data and leveraging cloud services without investing heavily in infrastructure.

Hybrid cloud

A hybrid cloud integrates private and public cloud models. It enables healthcare organizations to store critical data on private servers while utilizing public cloud resources for non-sensitive operations. This flexible setup allows for better management of costs, security, and scalability across healthcare systems, enabling efficient data management as well.

Service models

There are three main types here.

Software as a Service (SaaS)

SaaS delivers software applications over the cloud, eliminating the need for installation and maintenance on local systems. Healthcare providers benefit from access to tools such as:

• EHR platforms,
• patient management systems,
• telehealth services, etc.

All of them are hosted in the cloud for easier accessibility and streamlined updates.

Infrastructure as a Service (IaaS)

IaaS provides cloud-based computing infrastructure, including:

• servers,
• storage,
• and networking.

Healthcare organizations can use them without owning or maintaining physical hardware. This model offers scalability and flexibility, allowing medical institutions to scale resources based on demand and only pay for what they use.

Platform as a Service (PaaS)

PaaS offers a cloud platform that healthcare organizations can use to develop, test, and deploy custom applications. This option is perfect for those who need to build specialized solutions for patient care, analytics, and data management, without needing to manage the underlying infrastructure.

Challenges Faced by Healthcare Companies that Cloud Can Help With

In the healthcare industry, vast amounts of health data are utilized daily. The custom healthcare software development companies' main challenges are related to the security of this data, accessibility, and cost optimization.

High cost

Medical organizations store and process tons of data collected from different devices. Keeping them on hardware demands constant maintenance and doesn't come cheap. At the same time, cloud computing applications in healthcare take the load off and offer to scale when more space is needed.

Providers like Azure and AWS offer cloud consulting services with a pay-as-you-go approach for over 160 cloud services. This model gives organizations great flexibility since they pay only for the services they need and as long as they use them.

This is easier and saves the company significant funds, which means reducing the cost of services, improving medical equipment for diagnosis, etc.

Accessibility

Healthcare companies are complex organizations, and usually, more than one physician or team works with one patient. Conveying up-to-date patient data without additional communication is quite complicated and resource-intensive.

Thanks to cloud services, data can be updated in real-time, and each specialist can access and update it if they have permission. It dramatically simplifies everything for medical specialists and, consequently, patients. The latter can view changes in their prescriptions and appointments online without going to the hospital.

Security

There is a considerable risk of breakdown and data loss with no chance to restore it in case of using hardware resources. Since the healthcare industry always deals with data like diagnostics, lab tests, medical history, billing records, and more, its loss can cause irreparable damage to the company.

In the case of cloud services, the provider assures backups since servers are located mainly in different geographical locations. Security is one of the points that cloud service providers emphasize and one of the main advantages of cloud computing in healthcare. It saves data even in case of natural disasters or similar events.

In addition, IoT-connected medical devices can be vulnerable to hacker attacks. The cloud offers better security than on-premises systems, but potential security risks must still be addressed. Cloud servers are loaded with different security metrics like IDS/IPS, firewalls, end-to-end encryption, etc. Implementing these things will keep healthcare data safe.

Regulatory compliance

Healthcare organizations are subject to strict regulations, such as HIPAA (Health Insurance Portability and Accountability Act) in the U.S or the General Data Protection Regulation (GDPR) in Europe. All of them mandate secure handling of patient data.

Ensuring that cloud computing systems meet these compliance standards can be a significant challenge. While many cloud service providers offer compliance features, the responsibility of fulfilling regulatory requirements often still lies with the healthcare organization.

From our side, we can use our cybersecurity expertise to help you implement all the needed security measures and adopt proper security frameworks. It will help to meet all the strict regulatory rules and keep your cloud environment fully safe and protected.

Integration with legacy systems

Many healthcare organizations still rely on legacy systems that were not designed for cloud integration. Moving to the cloud requires seamless integration with existing software, electronic health record (EHR) systems, and other critical infrastructure. This can create compatibility issues and require significant time and resources to ensure smooth transitions.

How can we deal with this? The answer is partial or full system modernization. We can assess your existing system and networks and provide all the necessary updates. Or, we can choose the best way to modernize your healthcare system completely.

Data migration and storage management

Migrating large amounts of data from on-premises systems to the cloud is complex and can lead to data corruption or loss if not managed properly. And data management system is a critical aspect of cloud adoption.

Healthcare organizations must ensure that all data is accurately migrated and securely stored in the cloud, without causing delays in patient care or medical operations. This can be a significant challenge. We can prepare your data for a smoother and secure transition to cloud computing. Our team implements the best practices and tools to make the process fast and seamless.

Benefits of Cloud Computing in Healthcare

Cloud computing has become a key driver of innovation in healthcare, making it easier to access data, improve efficiency, and enhance patient care. Here are some of the main benefits.

Cost savings

Healthcare organizations can save on the high costs of maintaining on-premise infrastructure with cloud computing. By shifting to the cloud, healthcare companies don’t need to invest in expensive hardware or IT resources. Instead, they can rely on flexible, pay-as-you-go models that only charge for the services used. This approach reduces overall costs, allowing healthcare providers to focus more on improving care, rather than managing infrastructure.

Better efficiency

In healthcare, time is critical. Cloud computing helps automate tasks and streamline workflows, making it easier for medical professionals to focus on patient care. Whether it’s scheduling, patient record management, or billing, cloud-based solutions take the load off staff, allowing them to work more efficiently. With real-time data updates and easy access to critical information, cloud computing ensures that healthcare teams can make quick, informed decisions.

Enhanced security

Healthcare data is sensitive, and security is always a top priority. Cloud computing providers offer robust security measures such as data encryption, firewalls, and secure access controls to protect patient information. These security features ensure that sensitive data stays safe, even in the event of cyber threats or system failures. Cloud providers also offer backup solutions, so if disaster strikes, healthcare organizations can quickly restore their data and maintain continuity of care.

Greater accessibility

Cloud computing opens up healthcare data to professionals anywhere, anytime. Whether it’s a doctor on call, a nurse at home, or a specialist collaborating with a team across the globe, cloud computing makes accessing patient records and medical information fast and easy. This increased accessibility helps healthcare professionals make more informed decisions, no matter where they are, ensuring patients get timely care.

Better patient care

With cloud computing, healthcare professionals can access real-time data, which leads to better and quicker diagnoses. Cloud-based platforms also support telemedicine, which allows patients to have virtual consultations with doctors, improving accessibility for people who live in remote areas or have mobility issues. Additionally, wearable devices connected to the cloud enable physicians to monitor patients remotely, offering timely interventions when necessary and even saving lives.

Easier data management and operation

Healthcare organizations deal with huge volumes of data – everything from patient contact information to medical records and payment details. Managing this data manually can lead to errors that are costly both financially and in terms of patient safety. Cloud computing tools make data easier to manage, analyze, and use. Artificial Intelligence and Machine Learning integration within cloud platforms also help healthcare providers sift through vast amounts of data, extracting insights that can drive better care and operational efficiencies.

Faster time to market

Cloud computing can speed up the development and deployment of healthcare products. Take, for example, Spoedtestcorona during the pandemic. Faced with a tight deadline to launch a cross-platform web app for COVID testing, they turned to Amazon Web Services. The result? A fully compliant app was deployed within two weeks, allowing the organization to handle personal and medical data securely while meeting the urgent demand for safe testing.

Better clinic-patient interaction

Cloud computing facilitates seamless communication between healthcare providers and patients. With cloud services, patients can access their test results online, track their treatment progress, and get updates instantly. This not only improves the patient experience but also ensures better safety, as doctors can access full medical histories and avoid overprescribing or conflicting treatments.

Improved medical staff collaboration

Cloud storage makes it easy for healthcare professionals from different facilities or departments to access patient data whenever they need it. This enhances collaboration across medical teams, improving diagnosis accuracy and reducing the risk of misinterpretations. The ease of accessing up-to-date information means that specialists can consult one another, make timely decisions, and provide the best possible care for their patients.

Real Cases of How Cloud Computing is Used in Healthcare

Many leading healthcare organizations have already started to adopt cloud computing in healthcare management processes to deliver quality care, reduce operational costs, and improve the overall administration process. Here are the most prominent examples of cloud services for healthcare companies.

GE Healthcare

GE Healthcare is leveraging cloud computing to improve medical imaging and diagnostics. The GE Health Cloud stores, shares, and analyzes diagnostic images securely. AI tools integrated into the cloud assist with image interpretation, helping with earlier and more accurate diagnoses. Cloud-based imaging is making healthcare delivery faster, more efficient, and reliable.

Cloud capabilities used

• GE Health Cloud: A cloud-based platform for storing, sharing, and analyzing medical imaging data.
• AI integration: Incorporation of AI tools to assist in image interpretation and diagnostics.
• Secure data exchange: Enabling secure sharing of imaging data among healthcare providers.

Cloud benefits realized

• Improved diagnostic accuracy: AI tools have enhanced the accuracy of medical imaging interpretations.
• Faster decision-making: Real-time access to imaging data has accelerated the diagnostic process.
• Collaboration enhancement: Cloud-based data sharing has improved collaboration among medical professionals.

Cerner (Oracle Health)

Cerner is improving healthcare workflows through cloud technology. Their cloud-based EHR solutions make accessing and updating patient records easier for healthcare professionals in real time. Streamlined processes reduce downtime, improve decision-making, and help healthcare providers focus on delivering quality care.

Cloud capabilities used

• Cerner Millennium+: A cloud-based version of the Cerner Millennium EHR system.
• Data analytics: Utilization of cloud analytics to derive insights from patient data.
• Interoperability solutions: Cloud platforms facilitating data exchange across different healthcare systems.

Cloud benefits realized

• Enhanced data access: Cloud deployment has improved access to patient records across various locations.
• Operational streamlining: Cloud solutions have streamlined administrative and clinical workflows.
• Data-driven insights: Analytics capabilities have provided actionable insights for better patient care.

NetApp

This is a hybrid cloud data services company. It delivers data in real-time to make clinical processes faster and more efficient through quicker backup and restoration. Establishing data integrations allows for quicker access to vital patient information, enabling faster decisions and smoother care.

Cloud capabilities used

• Hybrid cloud infrastructure: NetApp offers solutions that integrate public, private, and on-premises cloud environments, enabling healthcare organizations to manage data across various platforms seamlessly.
• Advanced data services: Their services include data storage, backup, disaster recovery, and analytics, ensuring healthcare data is secure, accessible, and efficiently managed.
• AI and Machine Learning integration: NetApp supports healthcare data science teams by providing tools to deploy machine learning environments both on-premises and in the cloud, facilitating advanced data analysis and decision-making.

Cloud benefits realized

• Enhanced data accessibility: Healthcare providers can access critical patient information in real-time, improving decision-making and patient care.
• Cost efficiency: By leveraging cloud infrastructure, organizations can reduce the need for extensive on-premises hardware, leading to cost savings.
• Scalability: NetApp's solutions allow healthcare organizations to scale their IT resources according to demand, accommodating growth and fluctuating workloads.

Medsphere

This is a healthcare IT services company that provides services to multiple clinical, financial, accounting, nursing, and other companies.

Cloud capabilities used

• CareVue EHR system: Medsphere provides a cloud-based electronic health record (EHR) system that offers comprehensive functionalities for inpatient and ambulatory facilities.
• Revenue cycle management (RCM) cloud: Their RCM Cloud solution is an end-to-end revenue cycle management system that replaces traditional, resource-intensive billing processes with digital solutions that reduce manual tasks and optimize workflows.
• Phoenix IT services: Medsphere offers cloud-based IT services, including remote hosting and infrastructure solutions, to support healthcare organizations' IT needs.

Cloud benefits realized

• Operational efficiency: The cloud-based EHR and RCM systems streamline administrative tasks, allowing healthcare providers to focus more on patient care.
• Cost reduction: By transitioning to cloud-based solutions, organizations can reduce the costs associated with maintaining on-premises IT infrastructure.
• Improved service delivery: The scalability and flexibility of cloud services enable healthcare providers to expand their services without significant capital investment.

ClearData

This is a cloud computing company with a primary goal to shift medical data and apps into the cloud to enable users to retrieve it over a private and secure internet connection.

Cloud capabilities used

• Healthcare-exclusive cloud services: ClearData specializes in providing cloud security and compliance software and services exclusively for healthcare organizations, ensuring adherence to regulations like HIPAA and GDPR.
• CyberHealth™ platform: Their platform offers cloud security posture management (CSPM) solutions that provide full visibility, protection, automation, remediation, and enforcement of security and compliance measures to protect patient health information (PHI) across public cloud environments.
• Multi-cloud support: ClearData's solutions are designed to work across various cloud platforms, including Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure, providing flexibility and choice for healthcare organizations.

Cloud benefits realized

• Enhanced data security: ClearData's solutions help protect sensitive patient data from cyber threats and unauthorized access.
• Regulatory compliance: Their services ensure healthcare organizations comply with stringent healthcare regulations, reducing the risk of penalties and breaches.
• Operational efficiency: By outsourcing cloud security and compliance management to ClearData, healthcare organizations can focus more on patient care and less on IT management.

Nintex

The company simplifies the manual processes, especially with documentation. It strengthens the overall patient experience and provides automation services to healthcare industry experts.

Cloud capabilities used

• Robotic process automation (RPA): Nintex provides RPA solutions that automate repetitive, manual tasks in healthcare operations, such as data entry and claims processing.
• Workflow automation: Their platform enables the automation of complex workflows, improving efficiency and reducing errors in healthcare processes.
• Document generation and management: Nintex offers tools for automating document creation and management, streamlining administrative tasks in healthcare settings.

Cloud benefits realized

• Increased efficiency: Automation of routine tasks reduces the time and effort required for manual processes, allowing healthcare staff to focus on more critical activities.
• Improved accuracy: By minimizing human intervention, Nintex's solutions reduce the likelihood of errors in healthcare operations.
• Cost savings: Automation leads to operational cost reductions by decreasing the need for manual labor and improving process efficiency.

Carecloud

Carecloud practice management and EHR software help healthcare providers to improve their efficiency and enable them to connect directly with patients.

Cloud capabilities used

• Cloud-based EHR, remote patient monitoring, and practice management: CareCloud offers a comprehensive suite of cloud-based solutions, including electronic health records (EHR), practice management, revenue cycle management, and patient engagement tools.
• Robotic Process Automation (RPA): Integration of RPA to automate administrative tasks, reducing manual workload.
• Telehealth services: Provision of virtual care options to patients, facilitating remote consultations.

Cloud benefits realized

• Operational efficiency: Automation and cloud integration have led to improved operational workflows, reducing administrative overhead.
• Scalability: Cloud infrastructure supports the company's growth, enabling seamless expansion of services.
• Enhanced patient access: Telehealth capabilities have increased patient access to healthcare services, particularly in underserved areas.

Pfizer

This is an excellent example of using cloud computing in medicine for better communication and collaboration among all parts of the process. It involved the technology in Xalkori, a lung cancer drug developed for the particular patient category with the ALK gene mutation.

The invention of this treatment wouldn't have been possible without prior analysis made by cloud computing. Moreover, the cloud technology accelerated the project  –  the timeframe took three years, including the time needed for FDA approval.

Cloud capabilities used

• Cloud-based research collaboration: Use of cloud platforms for collaborative research and data sharing.
• Data storage and analysis: Secure cloud storage and analysis of clinical trial data.
• Regulatory compliance tools: Cloud solutions ensuring compliance with regulatory requirements.

Cloud benefits realized

• Faster time-to-market: Cloud collaboration has expedited the drug development process.
• Data security: Secure cloud storage has protected sensitive research data.
• Regulatory adherence: Cloud tools have facilitated adherence to regulatory standards in drug development.

How Cloud Computing Can Transform Your Healthcare Organization

Cloud computing has the potential to revolutionize the way healthcare organizations operate, driving efficiency, cost savings, and better patient care. From seamless data management to improved accessibility, cloud solutions can streamline your operations and elevate patient services. But how can your organization unlock the full potential of cloud computing?

At TechMagic, we specialize in providing tailored cloud solutions for healthcare organizations. Whether you're looking to modernize your infrastructure, enhance collaboration between your teams, or ensure the security and privacy of sensitive data, our team of experts is here to help. We understand healthcare providers' unique challenges and can guide you in adopting the right cloud model to meet your needs.

Final Thoughts

Cloud computing is changing the entire healthcare industry for the better. It’s helping organizations save money, improve access to data, and provide better patient care—all at the same time. By moving to the cloud, healthcare providers can work faster, collaborate more easily, and make better decisions with real-time data.

With the cloud, healthcare teams can securely store and share healthcare-related data, streamline operations, and even integrate cutting-edge technologies like AI and machine learning to improve treatment outcomes. Plus, it’s driving the growth of telemedicine and remote care, making healthcare more accessible than ever.

The healthcare cloud market is booming, expected to hit $65 billion by 2025, and more than 80% of healthcare leaders are already adopting cloud solutions. As cloud technology becomes more essential, it’s clear that healthcare organizations must embrace it to stay competitive and deliver top-quality care.

FAQ

1. What is cloud computing in healthcare?

   Cloud computing in healthcare is the use of remote servers, instead of on-site hardware, to store, manage, and process healthcare data. It allows healthcare providers to access patient records, aid healthcare delivery data, medical applications, and other vital services securely from anywhere. With cloud computing, healthcare organizations can scale resources as needed, improve collaboration among teams, and ensure more efficient patient care – all while reducing infrastructure costs.

2. What is the biggest concern with cloud computing in healthcare?

   Despite all benefits of computing power, the biggest concern with cloud computing in healthcare is data security challenges and privacy. Since sensitive patient information is being stored and processed online, healthcare organizations need to ensure robust security measures are in place. This includes encryption, secure access controls, and compliance with industry regulations like HIPAA. Additionally, the risk of potential data breaches and ensuring data privacy are top concerns for healthcare providers transitioning to the cloud.

3. Is cloud computing HIPAA compliant?

   Yes, cloud computing can be HIPAA compliant, but it depends on the cloud provider. To meet HIPAA requirements, cloud service providers must implement specific security measures like encryption, access controls for authorized healthcare providers, and regular audits to ensure the confidentiality, integrity, and availability of patient data. Healthcare organizations must choose a provider that offers HIPAA-compliant services and sign a Business Associate Agreement (BAA) to ensure that both parties are aligned in protecting patient information.

4. Which cloud platform is best for healthcare?

   When choosing a cloud platform for healthcare, it's essential to consider factors like security, patient's data flowing, compliance, scalability, and integration capabilities. Leading cloud providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) offer robust solutions tailored for the healthcare industry. AWS provides comprehensive security features and a wide range of services, making it a popular choice. Microsoft Azure offers specialized healthcare solutions with strong compliance support, while Google Cloud excels in data analytics and machine learning capabilities. Ultimately, the best platform depends on your organization's specific needs and goals.