# B2B Healthcare Procurement Has a Growing Hacking Problem

The unsung hero of global commerce - B2B supply chains - are facing a growing hacking problem that threatens the critical industries they serve, particularly in healthcare. The procurement-to-pay cycle is fraught with risks as life-saving supplies and materials are transported through complex networks of suppliers, manufacturers, and logistics providers.

## A Growing Threat to Healthcare Supply Chains

A recent court filing revealed that the UK's National Health Service (NHS) supply chain system, which handles over $5 billion of annual spend, has been continually attacked by bad actors. The system, called RESUS, had suffered from 35 high-priority "P1" alerts in the 11 months prior to November 2024, resulting in significant delays and disruptions to hospital shipments.

This incident is just one example of a broader global issue affecting healthcare's rapid digital transformation. As hospitals increasingly rely on digital systems to manage everything from inventory to supplier communications, a single breach can have far-reaching consequences, putting patient outcomes at risk.

## The Vulnerability of Medical Procurement Systems

Medical procurement systems are particularly vulnerable due to the complex web of suppliers, manufacturers, and logistics providers involved in the supply chain. Each link in this chain is a potential entry point for hackers, making it challenging for organizations to ensure cybersecurity.

Many procurement systems were never designed with cybersecurity in mind, leaving them struggling to keep up with evolving threats. While delayed shipments might seem like a logistical problem, in healthcare, logistics directly translate to patient outcomes. Delays in the supply of essential equipment or medications can jeopardize treatment schedules, affect surgical procedures, and hinder emergency responses.

## The Human Factor: Manual Processes and Cash Flow Uncertainty

"Every single day doctors are buying from major brands like McKesson, Henry Shine, AbbVie, all these folks, and oftentimes they're doing it manually through a salesperson who comes to their office and sends them an invoice," said Jonathan Chen, founder and CEO of Nitra. "It gets very jumbled up and the process is obscure." This manual process can lead to cash flow uncertainty, with 56% of healthcare treasurers saying that their cash flows are unpredictable.

## The Cybersecurity Challenge

The NHS supply chain incident serves as a stark reminder of the cybersecurity challenges facing healthcare procurement systems. As of 2024, just over 1 in 2 healthcare executives (54%) believe their organizations' technology is sufficient. While meeting regulatory standards is a good start, organizations may still need to go beyond compliance to build a truly resilient supply chain.

## A Proactive Approach: Leveraging Advanced Technologies

Fortunately, by leveraging advanced technologies such as artificial intelligence (AI) and machine learning (ML), healthcare organizations can build a more resilient and secure supply chain. These technologies can help flag potential threats before they become breaches, offering a proactive approach to cybersecurity.

For example, Big Data Healthcare's President and Co-founder Dean Puzon said, "Automation can significantly transform the payment reconciliation process in healthcare," adding that the future of healthcare payments is defined by the benefits of automation, artificial intelligence, and data-driven innovations.

## Conclusion

The growing hacking problem in B2B healthcare procurement demands immediate attention from organizations and regulatory bodies alike. By leveraging advanced technologies, adhering to regulatory frameworks, and fostering industry-wide collaboration, the healthcare sector can build a more resilient and secure supply chain that prioritizes patient outcomes above all else.