SOC 1 vs. SOC 2 and Type 1 vs. Type 2
A Guide for Healthcare
Data security is a growing concern for every organization handling sensitive information, and healthcare facilities like clinics and hospitals are no exception. Protecting patient data isn’t just about compliance; it’s about maintaining trust. That’s where SOC Certification comes in. If you’ve heard of SOC certifications but aren’t sure what they involve—especially the differences between Type 1 and Type 2—this guide is for you.
What is SOC Certification?
System and Organization Controls (SOC) certification is a set of standards designed to evaluate how well an organization manages critical information. It’s particularly relevant for service providers who store, process, or transmit customer data, offering a clear indicator of whether an organization has robust systems in place to safeguard that data.
There are two types: SOC 1 and SOC 2. SOC 1 is all about financial controls and is relevant if your services affect your clients’ financial statements. SOC 2 focuses on operational controls like data security, privacy, and availability—important for organizations like hospitals and clinics that handle sensitive patient data.
For healthcare facilities, SOC 2 certification shows a strong commitment to data security and patient privacy. Choosing an SOC 2-certified electronic health record (EHR) system ensures your facility meets rigorous data protection standards — building trust with both patients and partners.
Why Your Hospital Needs SOC 2 Certification—and an EHR That Has It
SOC 2 certification isn’t legally required, but it’s quickly becoming essential in today’s healthcare environment. If your hospital is considering getting SOC 2-certified, selecting an EHR platform like Azalea Health that already meets SOC 2 Type 2 standards is a critical step. Here’s why:
Enhanced Data Security and Privacy: SOC 2-certified EHR platforms are built to meet stringent security requirements, safeguarding sensitive patient data from breaches and unauthorized access. Hospitals that handle large volumes of protected health information (PHI) need these protections to avoid vulnerabilities.
- Type 1 confirms the system’s security design.
- Type 2 validates that these controls work effectively over time.
Streamlined Regulatory Compliance: Using an SOC 2-certified EHR can help your facility meet regulatory requirements like HIPAA by ensuring robust data protection safeguards are in place. Certification also simplifies audits and reduces the risk of costly non-compliance penalties.
Increased Trust with Patients and Partners: Having SOC 2 certification—and using an SOC 2-certified EHR—shows patients and business partners that your facility prioritizes security and operational integrity. This builds confidence in your ability to protect sensitive data, strengthening relationships with patients, providers, and payers.
The bottom line? Getting SOC 2-certified and using a certified EHR go hand in hand. Together, they create a secure, compliant foundation for your hospital’s operations while building trust with those who depend on you. Make SOC 2 certification a priority and choose an EHR platform that supports your commitment to data protection.
Type 1 vs. Type 2 Certification—What’s the Difference?
Beyond SOC 1 and SOC 2, there are also two distinct subcategories: Type 1 and Type 2. When comparing each type, the key distinction lies in what each report assesses and how long that assessment applies.
Type 1
- Evaluates the design of controls at a specific point in time.
- Focuses on whether the controls are properly designed and implemented.
- Answers the question, “Do you have systems set up for security and compliance?”
Type 1 certifications are often a good starting point for organizations just establishing their control systems, ensuring they meet the appropriate standards.
Type 2
- Evaluates both the design and operating effectiveness of controls over a period of time (usually 6-12 months).
- Includes real-time testing to ensure controls function as intended.
- Answers the question, “Do your systems work consistently and effectively in practice?”
Because it measures performance over time, Type 2 provides a deeper level of assurance, making it the preferred certification for organizations aiming to build long-term trust and accountability.
Which One Should You Pursue?
Many organizations begin with Type 1 to establish their controls before progressing to Type 2 as their systems mature. If you’re a healthcare facility using SaaS platforms or working with tech vendors, a Type 2 report proves your operations run smoothly and reliably.
How to Get SOC Certified — A Quick Overview
SOC certification is a multi-step process, but every step serves as a foundation for your organization’s long-term credibility.
1. Select Trust Principles for Your Certification
Decide which trust service principles apply to your organization. Common principles include security, availability, confidentiality, and privacy—key priorities for healthcare providers.
2. Define Your Controls
Develop clear internal controls to meet the selected trust principles. For example, controls might include staff training, data encryption protocols, and vendor oversight processes.
3. Assess Your Security Processes
Evaluate the current state of your processes. Are there gaps in compliance or areas for improvement? This step is vital for building a system that stands up to an auditor’s scrutiny.
4. Bring In External Auditors
Hire a certified public accountant (CPA) firm or another qualified auditor to carry out your SOC examination. They’ll assess and test your controls, issuing the Type 1 or Type 2 report upon completion.
5. Review and Optimize Regularly
SOC certification isn’t a “one-and-done” process — it’s an ongoing effort. Regular audits and process optimization ensure your organization remains compliant over time.
What Does SOC 2 Certification Mean for Healthcare Clinics and Hospitals?
For healthcare organizations, SOC 2 certification can be the difference between being seen as proactive data guardians or potential risks. Whether you’re a small clinic or a multi-facility hospital, these certifications ensure smoother vendor relationships, compliance with security standards, and greater trust from patients.
Think Long-Term: Starting with SOC 2 Type 1 to get your controls in place is practical for new systems. But for ongoing partnerships and building solid patient trust, making the leap to SOC 2 Type 2 is a smart move.
A Final Thought
Integrating healthcare technology is essential for modern healthcare providers — but it comes with responsibilities. SOC 2 certification provides the assurance hospitals and health clinics need to proceed confidently in their tech stack selections and partnerships.
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