SOC Reports for Healthcare Technology Vendors: When They’re Required and How to Prepare

Healthcare organizations increasingly rely on technology vendors to host patient data, process transactions, and support care delivery. As that reliance grows, so does scrutiny around data security, privacy, and internal controls. 

For healthcare technology companies, software-as-a-service (SaaS) providers, and other third-party service organizations, a System and Organization Controls (SOC) audit that incorporates Health Insurance Portability Accountability Act (HIPAA)-regulatory control requirements is increasingly expected as part of doing business. Whether driven by client demands, regulatory expectations, or competitive pressure, SOC reporting plays a critical role in demonstrating control maturity, building trust, and supporting growth. 

When to Begin SOC Reporting 

Healthcare technology companies often first encounter SOC requirements during client onboarding—particularly when working with UnitedHealthcare. Medical facilities, hospitals, and healthcare systems may request a SOC report as a condition of working with a vendor. 

In many cases, the request originates from the healthcare organization due to concerns about protected health information (PHI), which requires assurance over the security and accuracy of data and financial transactions. 

SOC reports also become more common as your organization grows. As vendors serve larger clients, handle broader data access, and become more operationally critical, formal risk management and control documentation become expected and are often aligned with HIPAA and, in some cases, ISO and NIST frameworks. Often, a SOC audit can incorporate additional framework-aligned controls through a SOC+ audit (for example, SOC+ HIPAA). 

Some organizations that work with UnitedHealthcare are asked to demonstrate HITRUST alignment or certification, which, in certain cases, can be supported through a SOC+ attestation that maps controls to the HITRUST CSF. A SOC+ audit is often less expensive than a HITRUST assessment and is performed under AICPA attestation standards. 

Beyond compliance, SOC reports can be a strategic tool. In a crowded healthcare technology market, demonstrating strong controls can: 

  • Reassure customers about data security 
  • Strengthen credibility and trust 
  • Differentiate your company from competitors 
  • Support enterprise-level sales conversations 

SOC 1 vs. SOC 2 

Is your organization being asked how your internal controls support the completeness and accuracy of information used in your clients’ financial reporting? Or do the questions revolve around your controls over security, availability, processing integrity, confidentiality, and privacy of your systems and data? Understanding the difference between SOC 1 and SOC 2 is key to choosing the right path. 

SOC 1: Financial Reporting Impact 

SOC 1 reports are relevant for organizations whose services impact information used in their customers’ financial reporting. 

For example, organizations that process claims, manage revenue cycle activities, handle payroll, or produce financial reporting outputs for healthcare entities often require a SOC 1 report. 

In some cases, organizations may need both SOC 1 and SOC 2, depending on their services. 

SOC 2: Most Common for Healthcare Technology 

SOC 2 reports focus on controls related to security, availability, processing integrity, confidentiality, and privacy under the AICPA Trust Services Criteria. They are the most common choice for healthcare technology providers because the Trust Services Criteria align closely with many HIPAA Security and Privacy Rule requirements. 

SOC 2 is often appropriate for organizations such as: 

  • Electronic medical record (EMR) hosting providers 
  • Insurance data processing and analytics companies 
  • Managed services organizations handling protected health information 
  • SaaS healthcare platforms 
  • Organizations responsible for securing hosted data—whether in their own data centers or cloud environments 

If your services involve storing, transmitting, or processing sensitive patient or provider data, SOC 2 is typically the right fit. 

Type 1 vs. Type 2: Snapshot vs. Performance Over Time 

Both SOC 1 and SOC 2 reports may be issued as Type 1 or Type 2. 

Type 1 reports evaluate the design of controls at a specific point in time. They are often used to satisfy immediate client requests but provide assurance only as of a single point in time. 

Type 2 reports assess both control design and operating effectiveness over a defined period of time, typically six to twelve months. Because they demonstrate that controls function consistently, Type 2 reports are generally preferred by auditors and institutional stakeholders. 

What’s in Scope for SOC 1 and SOC 2? 

A SOC 2 report for healthcare technology companies often includes: 

  • Servers and infrastructure 
  • Logical and physical security 
  • Application code and system configurations 
  • Data centers and hosting environments 
  • Security management processes 
  • System monitoring and incident response procedures 
  • Service restoration capabilities 
  • Session management, logging, and transmission security 
  • Data related to patient communications, locations, and scheduling 
  • Processes that could affect care delivery or patient services if disrupted 

Because these systems often touch sensitive patient data and operational continuity, careful scoping is critical to ensure the report reflects actual business risk. 

A SOC 1 report may focus more on processes and applications that directly impact client financial statements, including financial data sets and system calculations. 

Common Pitfalls in SOC Examinations 

Two issues frequently create challenges: 

Improper or Incomplete Scoping

Leaving critical systems or processes out of scope can result in an incomplete picture of your controls. Incomplete scoping can lead to delays, rework, and increased costs later in the examination process. 

Lack of SOC Readiness

Organizations sometimes begin a SOC exam without fully understanding the applicable criteria and documentation expectations. This can lead to delays, gaps in documentation, and control deficiencies that could have been addressed earlier. 

The Value of a SOC Readiness Assessment 

A SOC readiness assessment helps identify vulnerabilities before the formal examination begins. This gives your team time to: 

  • Strengthen or define controls 
  • Close documentation gaps 
  • Develop mitigation strategies 
  • Clarify scope 

Readiness work often reduces stress, surprises, and costly remediation during the exam period. 

The Anders SOC Report Experience 

SOC reporting can be resource-intensive, particularly for teams balancing growth and operational demands. Anders works with healthcare technology organizations to make the process more manageable and predictable. 

Our approach includes: 

  • Clear communication: You always know where you are in the process 
  • Experienced advisors: Industry insight helps you anticipate potential roadblocks 
  • SOC readiness services: Pre-exam preparation to align expectations and requirements 
  • Defined timelines and milestones: Allowing internal teams to plan accordingly 
  • Collaborative communication: We adapt to your organization’s needs 
  • Thoughtful scoping: Proper scope definition at the outset helps avoid unexpected delays or scope-driven cost increases 

The goal is fewer surprises, smoother examinations, and reports that meet stakeholder expectations. 

Plan Ahead to Stay Ahead 

As healthcare data ecosystems grow more complex, third-party assurance is becoming the norm rather than the exception. A SOC report demonstrates a structured, documented control environment aligned with healthcare security and privacy expectations. 

If your healthcare technology organization is fielding HIPPA compliance requests or preparing for growth, early planning for a SOC audit can save time and resources while strengthening client confidence. 

As one of the earliest adopters of SOC+ audits for healthcare vendors, Anders SOC advisors can help you assess readiness, define scope, and navigate the SOC process with confidence—putting your organization in a better position to meet your business partners’ audit requirements. Request a meeting with an advisor to discuss how SOC reporting fits into your compliance and growth strategy, including scope considerations, timelines, and associated fees. 

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