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HIPAA → Private Clouds

HIPAA compliant private cloud

While choosing the type of hosting your company needs is complicated enough on its own, if your business requires HIPAA compliance, the question becomes far more complex.

Using dedicated servers has been the default option for companies that need to ensure that all HIPAA regulations are followed for a long time. But with the increasing popularity of the cloud, especially its flexibility and scalability, more businesses started to wonder whether the cloud environment could be used with the same level of safety and HIPAA compliance as traditional dedicated servers.

The answer is yes. But as there are a few specifics to consider, we should first review what HIPAA compliance is and how it relates to both dedicated and private cloud servers.

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What is a HIPAA compliant private cloud?

A HIPAA-compliant private cloud is a dedicated cloud hosting environment specifically designed to help organizations meet the strict security and privacy requirements of the Health Insurance Portability and Accountability Act (HIPAA). It provides healthcare organizations with isolated, secure infrastructure that ensures electronic Protected Health Information (ePHI) is protected through robust encryption, access controls, and continuous monitoring. 

Unlike public cloud options, a private cloud offers greater control over data and resources, so organizations can implement customized compliance measures, maintain audit trails, and fulfill legal obligations such as signing a Business Associate Agreement (BAA) with the provider.

Key factors for a HIPAA-complaint private cloud

First, it’s important to note that HIPAA compliance is a shared responsibility. The hosting provider secures the infrastructure and implements required safeguards, while the healthcare organization manages access, data use, and ensures proper policies are followed to protect patient information. 

Both parties must collaborate closely to maintain full compliance and protect electronic Protected Health Information (ePHI). Using HIPAA-compliant hosting is not a blanket guarantee of compliance.

Business associate agreement (BAA)

A Business Associate Agreement (BAA) is a legal contract between a healthcare organization and its hosting provider that outlines each party’s responsibilities for protecting electronic Protected Health Information (ePHI). It’s required to ensure HIPAA compliance, so make sure your hosting provider will sign one.

Data management

HIPAA-compliant private clouds implement comprehensive security safeguards such as encryption, firewalls, intrusion detection, and multi-layered defenses to protect sensitive health data from unauthorized access, breaches, and cyber threats.

Access control

Access control restricts ePHI access to authorized personnel only, using role-based permissions, strong authentication methods, and regular access reviews. This minimizes the risk of unauthorized data exposure.

Data backup and recovery

Backup and disaster recovery solutions ensure that healthcare data is regularly saved and can be quickly restored in case of accidental loss, hardware failure, or cyberattacks, maintaining data integrity and availability.

Provider certifications

Hosting providers need to obtain certifications like SOC 2, PCI DSS, and ISO standards that demonstrate their commitment to maintaining secure environments and following industry best practices required for HIPAA compliance.

Regular audits

Routine audits assess the effectiveness of security controls and compliance policies. This helps organizations identify vulnerabilities, ensure ongoing adherence to HIPAA requirements, and prepare for potential external inspections.

Uptime and availability

High uptime guarantees and redundant infrastructure in HIPAA-compliant private clouds ensure that healthcare applications and data are consistently accessible—supporting critical operations without disruption or downtime.

Physical safeguards

Physical safeguards protect the data center environments where ePHI is stored, using controlled access, surveillance, and environmental protections like fire suppression and redundant power systems to prevent unauthorized entry, damage, or downtime.

How to choose: 6 considerations for choosing private cloud hosting

Some hosting providers only offer HIPAA-compliant solutions for healthcare organizations. Others have specific configurations to make servers and platforms compliance-ready. Either solution can work, but you still need to do your homework.

1. Know your organization’s needs

Choosing a HIPAA-compliant private cloud starts with understanding your organization’s specific needs—data volume, application types, user access, and regulatory demands—to ensure the hosting solution fits your goals perfectly.

2. Prioritize security

Look for a provider with strong security measures like encryption, intrusion detection, robust access controls, reliable backups, and clear incident response and breach notification policies to keep ePHI safe and maintain compliance.

3. Plan to scale

Select a provider that offers a broad platform so you can scale without sacrificing compliance. You need the flexibility to easily adapt to evolving compliance needs, growing data, and changing healthcare regulations without disrupting operations.

4. Look for healthcare experience

Providers experienced in healthcare IT and HIPAA requirements know the unique security challenges you face and can help you optimize your hosting environment for seamless, compliant performance.

5. Ask about a BAA

Your hosting provider must sign a Business Associate Agreement (BAA), legally committing to protect ePHI and clearly defining compliance responsibilities for both parties. If it’s not on their website, ask.

6. Minimize downtime

High uptime guarantees backed by redundant infrastructure and proactive monitoring are essential to ensure your healthcare data and applications remain available when you need them most.

How to choose dedicated vs private cloud for HIPAA

HIPAA doesn’t explicitly prohibit any particular server setup. You can be HIPAA-compliant even on a public cloud, but proving and ensuring such compliance would be much more difficult and is not recommended.

Thus, the question narrows down to finding a great hosting provider that is fully compliant with HIPAA (such as Liquid Web) and then choosing between private cloud or dedicated hosting based on your business needs.

The best use cases for a dedicated server are:

The best use cases for a private cloud are:

FAQ: HIPAA compliance and cloud providers

Several cloud providers offer HIPAA-compliant environments, including private clouds and major public clouds that meet HIPAA security requirements. Providers must support encryption, access controls, audit logging, and be willing to sign a Business Associate Agreement (BAA) to be considered HIPAA compliant.

Apple’s iCloud is not typically considered HIPAA compliant for storing electronic Protected Health Information (ePHI), as Apple does not offer a Business Associate Agreement (BAA) and lacks the specific safeguards required under HIPAA.

Yes, Microsoft Azure offers HIPAA-compliant cloud services and will sign a BAA with healthcare organizations. Azure provides the necessary security controls and compliance certifications to support HIPAA requirements.

AWS itself is HIPAA compliant as a cloud service provider, but ultimate compliance depends on how the customer configures and uses AWS services in line with HIPAA rules.

Dropbox Business offers HIPAA-compliant plans and will sign a BAA with healthcare organizations, but it’s important to configure Dropbox properly and use it according to HIPAA requirements to ensure compliance.

Additional resources

What is HIPAA-compliant hosting? →

A complete beginner’s guide

Scaling a compliant cloud →

How to scale up without compromising security

HIPAA guide for small business →

A complete resources for medical SMBs

Jake Fellows

Jake Fellows is the Sophisticated Hosting Product Manager for Liquid Web’s Managed Hosting products and services. He has over 10 years experience involving several fields of the technology industry, including hosting, healthcare, and IT-system architecture. On his time off, he can be found in front of some form of screen enjoying movies, video games, or researching into one of his many technical side projects.

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