Australia’s healthcare system stands as a global benchmark for quality, accessibility, and high standards of care. Yet, in 2025, the healthcare industry faces a perfect storm of challenges threatening its sustainability — from demographic shifts and workforce shortages, to rising costs and escalating cybersecurity threats.
As healthcare spending continues to rise, the 2025 – 26 Federal Budget has allocated AU$140.5 billion to the Health and Aged Care Portfolio, including:
- AU$33.9 billion for public hospitals.
- AU$7.9 billion to expand bulk billing incentives.
- AU$644 million to establish 50 new Medicare Urgent Care Clinics.
- AU$1.8 billion for broader health service improvements.
However, funding alone won’t solve the sector’s systemic issues. Fragmented responsibilities between federal and state governments, outdated legacy systems, and siloed data continue to hinder coordination and drive-up operational costs, draining resources and compromising care delivery.
At the same time, the sector is under siege from cyberthreats. In 2024, healthcare accounted for 20% of all reported data breaches in Australia and high-profile incidents – like the MediSecure ransomware attack and the Medibank breach – have underscored the urgent need for stronger digital infrastructure and governance in healthcare.
From Reactive to Strategic Security: A New Paradigm
It’s high time for healthcare organisations to move beyond reactive security and advocating for a proactive and strategic security — one that aligns cybersecurity with business goals, risk management, and compliance obligations.
Data security posture management (DSPM) – which shifts the focus from reactive to proactive and strategic security – involves continuous monitoring of data environments, identifying risks like oversharing and misconfigured permissions, automated policy enforcement, and alignment of cybersecurity initiatives with broader business goals. Platforms like AvePoint’s Confidence Platform enable healthcare organisations to identify risks such as oversharing or misconfigured permissions and take targeted actions to remediate them — before they escalate into breaches.
By moving to a proactive and strategic security approach, healthcare organisations are on the front foot for improving their DSPM maturity.
Data Resilience and Security: The Backbone of Continuity
Data resilience and security are no longer optional; they’re essential. Whether facing cyberattacks, accidental deletions, or system failures, healthcare organisations must ensure that essential data remains accessible and secure. The ability to recover from disruptions like cyberattacks or system failures is critical to maintaining patient trust and operational continuity.
This ensures that critical data across platforms like Microsoft 365, Dynamics 365, and Azure is continuously protected. Importantly, it also supports compliance with regulations such as the Australian Privacy Principles, including the “right to be forgotten.”
Navigating Regulatory Complexity
Australia’s healthcare regulations – from the Privacy Act 1988 to state-specific legislation such as Victoria’s Health Records Act 2001 – are governed by a multi-jurisdictional framework that spans federal, state, and territory jurisdictions, creating a labyrinth of compliance requirements. While this allows for local tailoring, it also introduces significant complexity.
Automation can ease the compliance burden by embedding compliance into everyday workflows — allowing healthcare providers to reduce risk, improve audit readiness, and free up resources for patient care.
To help achieve top-tier compliance, the Confidence Platform aligns with international standards such as ISO 27001 and SOC 2 Type II and has achieved Information Security Registered Assessors Program (IRAP) assessment at the PROTECTED level.
Tackling Operational Efficiency Through Automation
Legacy systems and manual processes are not only inefficient — they’re costly. According to Deloitte, more than half (51%) of Australia’s frontline clinicians agree that automation and better integration can streamline their administrative tasks, giving them more time for higher-value work. In contrast, manual compliance checks, fragmented data systems, and paper-based archives slow down workflows and increase the risk of human error.
AvePoint’s solutions address these inefficiencies by consolidating disparate systems and automating records management. A case study with Cancer Council NSW illustrates this impact: by migrating 20 years of records from HP TRIM to SharePoint Online, the organisation eliminated manual processes and significantly improved compliance and user adoption.
Managing ROT and Enhancing Data Quality
Redundant, obsolete, and trivial (ROT) data poses a hidden but significant threat to healthcare organisations. It inflates storage costs, increases the risk of data breaches, and complicates compliance with regulations like the Notifiable Data Breaches (NDB) scheme.
A structured information lifecycle approach covering data classification, retention, and secure disposal can help healthcare organisations in achieving this enhanced data quality.
The Confidence Platform automates this process using machine learning and dynamic classification rules, reducing administrative overhead and ensuring defensible disposal of outdated information.
The ROI of Investing in Technology
The future of healthcare in Australia hinges on resilience, security, and strategic innovation. The challenges are significant, but so are the opportunities for transformation. By embracing innovation, prioritising equity, and investing in people and technology, healthcare leaders can build a system that is not only resilient and efficient, but also compassionate and future-ready.
The challenges may appear complex, but they’re not insurmountable. The path forward lies in strategic investment, regulatory reform, and a commitment to innovation.
In a financially constrained environment, ROI is more important than ever. Strategic investments in technology must deliver measurable value — improving patient outcomes, reducing burnout, and enhancing operational efficiency.
The Confidence Platform’s analytics capabilities provide deep insights into how teams collaborate, communicate, and engage across digital platforms. This visibility enables healthcare leaders to identify communication gaps, streamline workflows, and support staff wellbeing. By tracking adoption and engagement, organisations can measure the effectiveness of strategic initiatives and make data-driven decisions.
With the right tools, frameworks, and mindset, healthcare leaders can build a system that is not only efficient and compliant, but delivers safe, high-quality care for all.
Access more comprehensive insights into navigating the complex healthcare landscape in our recently released eBook, Empowering Healthcare: A Strategic Guide to Data Security, Compliance, and Operational Resilience.
