SOC 2 + HIPAA: Combining Two Audits

Discover how a combined SOC 2 + HIPAA audit can strengthen your security posture, build client trust, and boost market readiness. For organizations handling sensitive healthcare data, HIPAA compliance is non-negotiable. It enables businesses to legally manage Protected Health Information (PHI), avoid regulatory penalties, and uphold patient privacy and trust. But regulatory compliance alone isn’t always enough, especially when working with clients or partners who expect more than just the bare minimum. Increasingly, organizations are also asked to demonstrate robust internal controls, data security practices, and third-party risk management. That’s where the SOC 2 audit report has become a de facto requirement in many industries. While HIPAA helps you meet legal obligations, a combined SOC 2 + HIPAA approach elevates your security posture, client trust, and market readiness. The most effective way to meet both expectations is through a SOC 2 + HIPAA examination. This is a single, integrated audit process that evaluates your organization’s controls against both frameworks. Here’s what you need to know about why aligning SOS 2 and HIPAA might be simpler and more efficient than you expect.

HIPAA and SOC 2: defining both

The Health Insurance Portability and Accountability Act (HIPAA) is a U.S. federal law that sets national standards for protecting the privacy, security, and integrity of PHI. It applies to healthcare providers, health plans, and any vendors (business associates) that process PHI on their behalf. HIPAA outlines specific administrative, physical, and technical safeguards that must be in place to ensure patient data is handled securely and lawfully. SOC 2 (System and Organization Controls 2) is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It assesses how effectively a service organization safeguards customer data based on five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. A SOC 2 report provides independent assurance to clients and partners that your internal controls and data protection practices meet industry standards. There are two types of SOC 2 report: SOC 2 Type I (a snapshot of controls at a point in time) and SOC 2 Type II (an assessment of how those controls perform over a 6–12 month period). A SOC 2 report ensures that sensitive data held by the service organization is properly protected. Holding a SOC 2 report means a competitive advantage as many partners and customers require it as part of the requirement, as a contractual obligation.

SOC 2 vs. HIPAA differences

Comparing SOC 2 and HIPAA is not entirely correct, as they serve fundamentally different purposes. SOC 2 is a trust-based voluntary examination performed by independent auditors. It is designed for service organizations to demonstrate strong internal controls over data security, availability, confidentiality, processing integrity, and privacy. In contrast, HIPAA is a mandatory U.S. federal law that applies specifically to healthcare organizations and their business associates, requiring them to safeguard PHI. While SOC 2 and HIPAA both aim to protect sensitive data, they serve different purposes and operate under distinct frameworks. One of the key differences between HIPAA and SOC 2 lies in the scope of data they protect. HIPAA is narrowly focused on PHI within the healthcare ecosystem. In contrast, SOC 2 applies more broadly to any sensitive customer data, regardless of industry, making it relevant to a wide range of service organizations. Beyond data scope, HIPAA imposes several regulatory requirements that fall outside the SOC 2 Trust Services Criteria. These include:

• Breach notification. HIPAA mandates that organizations follow strict procedures for notifying affected individuals, the media, and the U.S. Department of Health and Human Services (HHS) in the event of a PHI breach. These obligations are not covered by SOC 2 and must be managed separately.
• Business Associate Agreements (BAAs). HIPAA requires covered entities to enter formal contracts with their business associates who handle PHI on their behalf. These agreements must define each party's responsibilities regarding data sharing, processing, and protection.
• Dedicated compliance role. HIPAA also requires organizations to appoint a designated individual or team responsible for managing and overseeing HIPAA compliance. Auditors will expect documented evidence of this assignment and role clarity. SOC 2 doesn’t have such a requirement.
• Data protection controls. While both SOC 2 and HIPAA emphasize protecting sensitive data, their approaches differ. HIPAA mandates specific safeguards for Protected Health Information (PHI), including access controls, encryption, and breach notification requirements defined by law. SOC 2, on the other hand, evaluates broader data protection practices based on trust principles, allowing more flexibility in how controls are implemented. For example, while data encryption may not always be necessary under SOC 2, HIPAA requires all data to be encrypted.

SoC 2 and HIPAA overlaps

In essence, both SOC 2 and HIPAA share common ground in how organizations are expected to implement and demonstrate strong data protection practices, especially when handling sensitive or regulated information. Many of their control requirements align, allowing organizations to build a unified security program that addresses both HIPAA and SOC 2:

• Access controls are fundamental requirements in both HIPAA and SOC 2. Organizations must ensure that only authorized users can access sensitive data, which is typically enforced through unique user IDs, role-based permissions, session timeouts, and the prompt removal of access when an employee’s role changes or they leave the company.
• Audit logging and monitoring are critical for maintaining visibility into system activity. Organizations must implement and maintain logs that track access to systems and sensitive data. These logs should be reviewed regularly, supported by alerting mechanisms for suspicious activity, and retained for a defined period to assist with investigations or audits.
• Risk management is necessary for both HIPAA and SOC 2. This involves conducting periodic risk assessments to identify vulnerabilities, developing mitigation plans, and updating safeguards in response to emerging threats or operational changes.
• Third-party management is also emphasized in both standards. Organizations must assess and monitor the security posture of third-party providers, ensure contractual protections are in place, such as Business Associate Agreements for HIPAA, and continuously evaluate vendor performance to ensure compliance.

These overlapping controls provide a strong foundation for organizations seeking SOC 2 + HIPAA compliance, reducing redundant work and enhancing overall risk posture.

SOC 2 + HIPAA comparison table

CategoryHIPAASOC 2 Type Federal regulation Voluntary audit standard Applicable to Covered entities & business associates that handle PHI Tech & service providers handling customer data Data Scope Protected Health Information (PHI, ePHI) Any customer data Oversight U.S. HHS AICPA Breach Notification Required by the Breach Notification Rule Not included in the SOC 2 criteria BAA Mandatory for all PHI-handling vendors reportNot required Dedicated Compliance Role Required (HIPAA Privacy or Security Officer) Not explicitly required Audit Reporting No standard audit report SOC 2 Type I or Type II attestation report Benefits Supports healthcare partnerships, legally necessary Enhances credibility, often requested by clients Intermapping Security Rule aligns with many technical SOC 2 controls Security TSC maps to many HIPAA safeguards

Why a SOC 2 + HIPAA audit is a smart investment

For organizations that work with healthcare clients or handle sensitive data (e.g. healthcare SaaS), combining SOC 2 and HIPAA into a single audit process can be a cost-effective and strategic choice. Beyond simply checking regulatory boxes, it offers meaningful benefits in how your team operates, manages risk, and plans for growth. First, a SOC 2 + HIPAA audit helps better manage time and resources. Instead of managing two separate audits with overlapping requirements, you can align both efforts into a single, coordinated process. This reduces the audit cost that you pay to the auditors as well as the cost of your internal resources that need to participate in the audit process. Second, the SOC 2 + HIPAA combination serves as independent verification of your compliance and control effectiveness. A combined SOC 2 + HIPAA audit offers objective, third-party validation that your organization not only has the right policies in place but that those controls are functioning as intended. This transparency builds trust with clients, partners, and regulators, demonstrating that you take both security and compliance seriously and giving you a clear competitive advantage. A SOC 2 + HIPAA audit opens your products and services to the healthcare industry. Healthcare providers and insurers require HIPAA compliance, but many also ask vendors to provide a SOC 2 report during procurement. By achieving both, you meet the expectations of a highly regulated industry and eliminate a major barrier to entry, making it easier to serve hospitals, clinics, digital health startups, and other healthcare clients. Finally, SOC 2 + HIPAA audit helps further build trust with clients and partners. Being able to show that your organization meets both SOC 2 and HIPAA requirements sends a strong message: you're serious about protecting data. This builds confidence with healthcare providers, enterprise customers, and other stakeholders.

Challenges in the dual approach

While the benefits of the SOC 2 + HIPAA audit are clear, achieving compliance presents challenges. First, organizations often face the complexity of overlapping requirements. HIPAA and SOC 2 share many similarities in control areas but differ in implementation. Aligning the two without duplication requires careful planning and coordination. Second, the SOC 2+HIPAA compliance requires meticulous coordination across departments. Achieving compliance necessitates cross-functional collaboration across IT, legal, HR, and operations departments, which can be difficult, especially in larger or decentralized organizations. Finally, organizations are often confused by the evolving threat landscape and regulatory changes. The cybersecurity threat landscape is dynamic, and both HIPAA and SOC 2 require continuous updates to stay ahead of new standards and regulations. For example, the proposed 2025 HIPAA updates can affect compliance and require additional compliance efforts. Despite these challenges, organizations that take compliance seriously can successfully navigate the complexities of compliance, especially when partnering with compliance experts.

Simply compliance with Planet 9

Navigating both SOC 2 and HIPAA requirements can feel overwhelming, especially for growing organizations juggling limited resources, tight deadlines, and evolving client expectations. The good news is that with the right guidance, a dual compliance strategy doesn't have to be complicated or costly. At Planet 9, we help companies design and implement streamlined, audit-ready programs that meet both SOC 2 and HIPAA requirements without duplicating effort. Whether you're preparing for your first audit or looking to refine your existing controls, our team brings the experience and structure to make the process more manageable. Book a free consultation to explore how we can support your compliance goals and stay in touch with us for ongoing insights and practical guidance.