Buying a Practice? Do Not Overlook These IT Red Flags
Cornerstone Computer Solutions
Providing IT Services to the Healthcare Industry Since 2005!
Buying a practice is an exciting step, but it is also a major investment that carries responsibilities and risks. Most buyers spend a great deal of time evaluating financial performance, staff dynamics, patient numbers, and the condition of the facility. What often gets overlooked is the condition of the practice’s technology. Outdated, unsupported, or unsecured systems can create severe financial strain after the purchase and may put the practice at immediate risk of downtime, compliance violations, or data loss.
Before moving forward with any acquisition, it is important to complete structured IT due diligence so you know exactly what you are walking into.
This Article Will Address
- What IT issues buyers should review before purchasing a practice
- How to evaluate cybersecurity risk in an acquisition
- The technology that modern healthcare practices should have
- How to assess whether hardware and servers need replacing
- HIPAA and compliance items to verify
- How to evaluate data backup and recovery systems
- Who should handle IT due diligence
- Why Cornerstone Computer Solutions is the right partner during a practice purchase
What IT Issues Should I Look for When Buying a Healthcare Practice?
Technology should support your practice, not hold it back. During an acquisition, it is important to review several core areas to understand whether the systems are stable, current, and secure. Key items to evaluate include:
- Age and condition of computers, servers, switches, routers, and firewalls
- Unsupported or outdated operating systems, such as Windows versions that are no longer patched
- Outdated EHR or practice management systems that do not integrate with modern workflows
- Slow networks or poor Wi-Fi coverage that create daily bottlenecks
- Missing cybersecurity controls such as antivirus, firewall protection, or multifactor authentication
- Unknown vendor contracts or long-term software commitments you would inherit after the purchase
- Lack of centralized IT documentation, including passwords, licensing records, and network maps
- Shadow IT, where staff use personal devices or unauthorized software to store or access patient data
How Do I Evaluate the Cybersecurity Risk of a Practice Before Buying It?
Cybersecurity weaknesses are among the most expensive problems a buyer can inherit. A single breach or ransomware incident can shut down operations, damage community trust, and create costly remediation work.
When reviewing cybersecurity, look for warning signs such as:
- Outdated firewalls, antivirus tools, or cybersecurity software
- No multifactor authentication for logins
- Unencrypted devices or servers that store patient information
- Missing security patches or long periods without updates
- No ongoing monitoring or alerting systems in place
- Any history of ransomware incidents or malware infections
- Lack of cybersecurity policies or staff training
What Technology Should a Modern Dental or Medical Practice Have?
A well-equipped healthcare practice depends on efficient, secure, and updated systems that support both clinical workflows and business operations. Modern practices typically have:
- Secure, supported workstations and servers
- Updated EHR or practice management systems designed for clinical performance
- Integrated imaging, radiography, or specialty systems that communicate reliably
- Reliable backup systems with fast recovery capabilities
- Business-class firewalls and networking equipment
- Secure cloud services where appropriate
- Encrypted email, secure messaging, and controlled file sharing
- Mobile device management and appropriate access levels for staff
How Do I Know if a Practice’s Computers and Servers Need Replacing?
Hardware is one of the largest hidden expenses buyers encounter. Several measurable indicators can reveal whether replacement is needed:
- Devices older than five years
- Systems running operating systems that are no longer supported
- Slow performance, freezing, crashing, or long startup times
- Limited storage capacity or outdated hardware components
- Inability to run current versions of clinical or imaging software
- Loud, overheating, or failing hardware
What HIPAA or Compliance Issues Should I Check Before Acquiring a Practice?
Healthcare practices carry strict regulatory obligations. Noncompliance can create significant liability for buyers. Important HIPAA-related items to review include:
- Missing or outdated Business Associate Agreements
- Lack of formal privacy or security policies
- Staff without HIPAA training verification
- Insecure device access policies or shared user accounts
- No audit logs or access tracking within software systems
- No documented breach history or incident responses
- Protected health information stored on personal devices
- Outdated or unencrypted backups
How Do I Assess Whether a Practice Has Proper Data Backup and Recovery?
Data loss can bring a practice to a halt. A thorough assessment of backup and recovery processes should confirm whether the practice can restore its data quickly after an outage, cyberattack, or equipment failure. Key items to check include:
- Daily or real-time backups
- Offsite or cloud redundancy to protect information during emergencies
- Encrypted backup files to safeguard sensitive data
- Documented disaster recovery plan and procedures
- Ability to restore data quickly during a downtime event
- Frequency of backup testing to ensure files are recoverable
- Confirmation that backups include servers, imaging systems, and EHR data
Who Should Handle IT Due Diligence When Buying a Practice?
Internal staff can identify some issues, but most teams are not equipped to perform a full technical evaluation. Proper IT due diligence requires deep knowledge of healthcare regulations, clinical software, network security, and long-term infrastructure planning.
A specialized healthcare IT provider can:
- Identify security gaps, outdated systems, and hidden upgrade costs
- Review the entire infrastructure from workstations to servers to cloud applications
- Evaluate clinical software and imaging system compatibility
- Provide a full audit, risk assessment, and prioritized upgrade roadmap
- Support negotiations by helping quantify the true cost of needed improvements
For best results, involve an IT partner before signing a letter of intent or finalizing purchase terms.
Why Trust Cornerstone Computer Solutions When Buying a Practice?
Buyers choose our team because we offer:
- Deep experience working with more than 30 dental, veterinary, and medical systems
- Expertise in integrating practice management and imaging systems
- Comprehensive support across Colorado, Texas, and the greater Rocky Mountain Region
- Fast response times and dependable customer service
- Full-service IT solutions covering security, hardware, software, compliance, and cloud systems
- Pre-purchase IT evaluations that identify risks before closing
- Seamless post-purchase onboarding and long-term management
- A commitment to acting as a trusted advisor for healthcare professionals
Schedule an IT Assessment for Your Practice Today
When buying a practice, IT due diligence is just as important as reviewing financial statements, patient numbers, or staff structure. Technology affects nearly every part of a practice, and hidden IT issues can lead to unexpected downtime, compliance problems, and costly upgrades.
To schedule a free IT assessment or learn more about how we support buyers, contact Cornerstone Computer Solutions today.
Sources
- HealthIT.gov. “Security Risk Assessment Tool.”
- HHS.gov. “HIPAA Security Rule Guidance.”
- NIST Cybersecurity Framework.
We are Here to Help!
Peace of mind is essential. Any time you need us, we’re just a click or call away.
Sign Up for Our Newsletter!
Don’t miss our quarterly newsletter. Sign up today!