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Home Oceania Australia New Zealand

Public Health Providers Have To Obey Strict Cyber Security Rules – So Should Private Contractors

by Theinsightpost
April 4, 2026
in New Zealand
0 0
0
Public Health Providers Have To Obey Strict Cyber Security Rules – So Should Private Contractors


Saturday, 4 April 2026, 8:24 pm
Article: The Conversation

Gehan
Gunasekara
, University
of Auckland, Waipapa Taumata Rau
; Ian
Welch
, Te
Herenga Waka — Victoria University of Wellington
,
and Lisa
Patterson
, Te
Herenga Waka — Victoria University of
Wellington

Following a series of
significant health data breaches, the government released a
cyber
security strategy and action plan
to establish a
national framework for responding to escalating cyber
threats.

The strategy covers New Zealand’s
critical infrastructure, from the electricity grid to
transport, financial payment systems and the health sector.
The government held consultations
with each sector
this week.

We argue better
regulatory oversight is particularly urgent for the health
sector.

Advertisement – scroll to continue reading

Late last year, more than 120,000 New
Zealanders had their medical records compromised when the patient
data portal Manage My Health was hacked
.

Then
in February, the prescription app MediMap
was taken offline
after patient information was found to
have been altered in a cyber attack.

These security
breaches have damaged trust in New Zealand’s entire health
system. They are being investigated as part of a government
review
and an inquiry
by the privacy commissioner
.

To stop this from
happening again, the government must require all parties
holding, transferring or sharing health data to be subject
to regulatory oversight and mandatory audits, regardless of
whether they are in the private or public
sector.

Lack of a single cyber security
law

From a public standpoint, the distinction
between public healthcare providers and their private IT
service providers is immaterial.

This is reinforced
by section 11 of the Privacy Act, which says healthcare
providers remain responsible for information handled on
their behalf, even when using IT service providers.

However, a clause in the Health
Information Privacy Code
also lists IT providers as
“health agencies” which may result in confusion as to
which agency is ultimately responsible.

Currently,
New Zealand has no single piece of legislation that mandates
enforceable minimum cyber security requirements. There are
no explicit, binding due-diligence requirements in primary
legislation for choosing IT services, beyond general privacy
and security obligations.

We argue this needs to
change.

Current issues with health
data

When patients change doctors, their old
records don’t disappear. They can remain on whichever
system their previous practice used for many
years.

One patient reported their medical files
were still uploading to Manage My Health two
years after their doctor’s practice stopped using the
platform
.

While providers are legally required
to protect and manage this information, there is limited
proactive auditing. Patients may not be notified unless or
until a serious incident occurs.

Section 11 of the
Privacy Act should be strengthened to require clear
auditable contractual commitments between providers and
those acting on their behalf to store or process
information.

Government agencies face strict rules
because New Zealand’s protective
security requirements
mandate how government departments
must handle sensitive information. If data needs protection
when held by the government, it needs equal protection when
held by contractors.

In the UK, any public or
private organisation accessing patient data held by the
public health system must complete a mandatory data security
and protection toolkit annually. In the US, federal audits
of healthcare providers are conducted under the Health
Insurance Portability and Accountability
Act
.

Another example is Finland, which
responded swiftly to a 2020 data breach at the private
psychotherapy centre Vastaamo, mandating security audits for
all healthcare providers, with no
exceptions.

Vastaamo’s system, holding records of
33,000 psychotherapy patients, had stored sensitive data
without encryption. Investigations found Vastaamo’s
patient database was exposed through very weak administrator
access controls and inadequate network restrictions, and
that the system had not been subject to effective external
security audits.

Since Finland strengthened and
broadened mandatory external security audits for those
handling patient information, no breach on the same scale
has been reported. New Zealand should follow a similar
approach.

As we await the findings from the inquiry
and review on how the breaches occurred, the government
should consider the following points:

Data
storage and sovereignty

If data is stored
on foreign-owned servers, foreign laws may apply regardless
of the physical location. This is particularly relevant when
we consider the implications for Māori
data.

Due diligence and mandatory
oversight

Government agencies must follow
clear and auditable processes before trusting private
vendors with patient data.

All private companies
handling sensitive health data are already categorised as
health agencies and must comply with the conditions of the
Health Information Privacy Code 2020. Clear guidance should
be given to doctors and health providers to help them
determine whether they should entrust patient data to
private companies.

Historic data

At present, rules regarding the retention and
deletion of health data are found across multiple
legislative codes. The ability to delete data is limited. We
need better transparency and supervision across the
system.

We argue New Zealand needs mandatory
security audits for all healthcare data systems. We hope the
government will enforce this.The Conversation

Gehan
Gunasekara
, Professor of Commercial Law, University
of Auckland, Waipapa Taumata Rau
; Ian
Welch
, Associate Professor in Cybersecurity, Te
Herenga Waka — Victoria University of Wellington
,
and Lisa
Patterson
, Postdoctoral Research Fellow in
Cybersecurity, Te
Herenga Waka — Victoria University of
Wellington

This article is
republished from The
Conversation
under a Creative Commons license. Read the
original
article
.

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