Article

Industry Spotlight: Achieving CMMC Level 2 Compliance in Healthcare

May 29, 2025

Healthcare providers, medical device manufacturers, and health IT vendors serving the U.S. Department of Defense are facing a new cybersecurity mandate: CMMC Level 2 compliance.

As the Cybersecurity Maturity Model Certification (CMMC) 2.0 moves toward full implementation, organizations that handle Controlled Unclassified Information (CUI) in the healthcare space must align with all 110 practices in NIST SP 800-171 to remain eligible for DoD contracts.

While compliance is challenging across all sectors, healthcare faces unique risks—from legacy clinical systems and third-party vendor exposure to overlapping regulatory frameworks like HIPAA. The organizations that move early will avoid bottlenecks and gain a competitive edge in one of the most tightly regulated environments in the federal landscape.

Why CMMC Level 2 Matters for Healthcare Organizations

CMMC Level 2 is required for any contractor or subcontractor that handles CUI in support of the DoD. That includes:

  • Health IT providers building or maintaining platforms for military healthcare programs
  • Medical device manufacturers supplying diagnostics or therapeutics to defense agencies
  • Clinical research institutions conducting DoD-funded studies or trials
  • Managed service providers (MSPs) supporting electronic health record (EHR) systems for DoD healthcare facilities

Many of these organizations already operate under HIPAA. But HIPAA compliance is not enough. CMMC introduces additional requirements around technical controls, documentation, and maturity that go well beyond privacy rules and breach notification.

Top CMMC Compliance Challenges in Healthcare

1. Complex IT Environments with Legacy Systems

Hospitals and research institutions often rely on outdated systems—some running unsupported operating systems or proprietary software—that are difficult to secure or monitor. Many also struggle with sprawling networks that blend clinical and administrative systems, making boundary definition and CUI scoping particularly challenging.

2. Overlap with HIPAA Creates Gaps in Coverage

HIPAA focuses on protected health information (PHI), which may also be classified as CUI in federal contracts. Organizations may assume that existing policies are sufficient, only to find that CMMC requires more granular access control, auditing, encryption, and incident response planning—all specifically mapped to NIST 800-171.

3. Heavy Reliance on Third-Party Vendors

From cloud EHR platforms to telehealth services, healthcare is a deeply outsourced ecosystem. Under CMMC, organizations are responsible for how their vendors handle CUI. If subcontractors aren’t compliant—or if contracts don’t include the right flow-down clauses—your entire compliance posture could be at risk.

4. Resource Constraints and Compliance Fatigue

Many healthcare organizations are already stretched thin meeting HIPAA, PCI, and other regulatory demands. Adding another compliance layer presents new challenges to already taxed IT and security resources that will require additional planning, cross-functional coordination, and executive sponsorship.

Four Strategic Moves for CMMC Readiness in Healthcare

Whether you’re a research lab, medtech firm, or IT vendor supporting DoD health systems, these strategies can help you align with CMMC Level 2:

1. Start with a CMMC Gap Analysis

A CMMC gap analysis provides a structured review of your current cybersecurity posture against all requirements including compliance with NIST 800-171. It will help you identify technical, policy, and documentation gaps that will require additional investments beyond those made to ensure HIPAA compliance. For healthcare, this step is critical in understanding how CUI flows through clinical, research, and administrative environments.

2. Map and Segment CUI Environments

Identify where CUI is stored, processed, or transmitted, and define your CMMC assessment boundary accordingly. In complex healthcare settings, it may be necessary to segment research systems from clinical systems or isolate vendor-managed platforms to reduce scope.

3. Develop Policies Specific to CMMC (Not Just HIPAA)

CMMC requires formal, repeatable, and enforced security policies—and assessors will expect to see evidence that these are being followed. Many healthcare orgs find they need to write entirely new procedures for access control, logging, system monitoring, and risk assessment that are distinct from HIPAA or Joint Commission requirements.

4. Plan for Assessment-Readiness Over Time

CMMC isn’t a checkbox. It reflects operational maturity. That means establishing governance, assigning roles, and running internal audits to validate implementation. Mock assessments can provide a valuable test run for organizations that believe they’re ready for the real thing.

Why Acting Early Matters

Healthcare is one of the most targeted sectors for cyberattacks—and one of the most heavily regulated. DoD healthcare contractors face pressure not only from CMMC requirements, but also from heightened expectations around patient privacy, data integrity, and national security.

Organizations that delay CMMC preparation risk losing federal contracts or facing remediation timelines that disrupt operations. Those who move now can build trust with contracting officers, improve their overall cyber posture, and maintain their eligibility as the DoD tightens enforcement.

Final Thoughts

CMMC Level 2 compliance is now a core requirement for healthcare organizations working with the DoD. While existing regulatory programs like HIPAA cover part of the landscape, they don’t go far enough. A strategic, well-scoped compliance plan can reduce assessment risk, build competitive advantage, and support long-term contract growth in the defense healthcare sector.

If you're early in your journey, start with a CMMC gap analysis to understand what’s in scope and where remediation is needed. If you believe your organization is prepared, a mock assessment offers a full-scale dry run to test assessment readiness and reduce risk.

Want to learn how we help healthcare organizations accelerate CMMC readiness without disrupting operations? Talk to an expert today about how the Coalfire Federal team can help you successfully achieve certification.