73% of Rural Healthcare Orgs Say They Struggle to Maintain HIPAA Compliance Due to Staffing and Funding Gaps

July 18, 2025 at 12:59 PM EDT

Paubox survey reveals rural providers are struggling with every major challenge—from staffing to infrastructure—as cyber threats rise

As cyber threats grow more frequent and sophisticated, rural hospitals and clinics face challenges on all fronts—tight budgets, limited staff, inadequate training, complex technology, and unsupportive vendors. Many are left trying to manage security tools without the IT resources to support them.

Rural healthcare organizations are encountering more roadblocks to cybersecurity than their urban peers—and not just in one or two areas. The findings are part of a broader pattern: rural healthcare organizations are more likely to face every major cybersecurity barrier surveyed, including outdated systems, limited vendor support, and friction-filled tools that hinder care delivery.

“Small and rural hospitals are on the frontline of America’s healthcare cybersecurity crisis,” said Doug Brown, founder of Black Book Research. “The majority lack the staffing, funding, and infrastructure to defend themselves against increasingly sophisticated attacks.”

Many rural health systems are operating without the tools or support to safely modernize, while continuing to serve 60 million Americans. As ransomware campaigns and phishing threats continue to rise and become more sophisticated, the tools they rely on—especially for email—are often falling short. 88% of rural leaders said they lack confidence that their current email platform is fully HIPAA compliant out of the box.

“Cyber defense is a moving target, and one that requires significant time, energy and resources,” said Kate Pierce, CIO and CISO at North Country Hospital in Vermont.

Among the report’s key findings:

73% of rural healthcare orgs say they struggle to maintain HIPAA compliance due to staffing and funding gaps.
Rural orgs trail urban ones by 22% in adopting AI-based threat detection.
4 out of 5 rural leaders say their infrastructure can’t support advanced email security.
50% say budget limitations are a top barrier to upgrading security tools—nearly double the rate of urban peers.

The report also highlights a critical but often overlooked issue: what happens when security tools create friction. According to the survey, 6 out of 10 rural providers say their current secure email platform causes regular complaints and workflow delays. More than half report poor mobile usability and slow encryption that can delay care.

“We can’t expect rural hospitals to meet the same compliance standards as large systems without giving them tools that fit their size and structure,” said Rick Kuawahara, Chief Compliance Officer at Paubox, “In cybersecurity, usability is security.”

When tools get in the way, staff start looking for workarounds—like reverting to personal email, skipping encryption steps, or delaying communication altogether. The report calls for secure communication tools that are built for lean teams, designed to run quietly in the background.

To see the full data and recommendations, read the report: Rural Healthcare Left Vulnerable to Cyber Attacks.

About Paubox

Paubox is a leader in HIPAA compliant communication and marketing solutions for healthcare organizations. According to G2 rankings, Paubox leads the industry for Best Secure Email Gateway, Email Security, HIPAA Compliant Messaging Software, and Email Encryption solution, and is the only HIPAA compliant email company listed on G2's 2025 Best Healthcare Software Products. Paubox solutions include Paubox Email Suite, Paubox Marketing, Paubox Email API, Paubox Forms, and Paubox Texting. Launched in 2015, Paubox is trusted by over 7,000 healthcare organizations, including Cost Plus Drugs, Covenant Health, Devry University, and SimonMed Imaging. Learn more at paubox.com