The healthcare vertical appeals to managed service providers (MSPs) as connectivity within this already connected industry continues to grow.
According to Precedence Research, the global IoT medical devices market was valued at $106 billion USD in 2025 and is projected to reach approximately $971 billion USD by 2034, reflecting a compound annual growth rate (CAGR) of 27.97 percent from 2025 to 2034. The North American market size was estimated at $29.67 billion USD in 2024 and is growing at a CAGR of 28 percent during the forecast period. These figures represent only the medical device market; hospitals, clinics, and physicians’ offices also have numerous other points of connectivity that require ongoing monitoring and maintenance.
Medical facilities can be a lucrative opportunity for MSPs seeking a new vertical. The growing number of medical IoT devices, combined with a chronic shortage of IT staff in hospitals and clinics, creates a strong demand for IT services. Medicine is an ideal match for many MSPs due to this increasing need. However, an MSP without medical clients must lay the proper groundwork first. Entering the field without a clear understanding can lead to trouble. The healthcare industry is one of the most heavily regulated sectors, and failing to navigate these regulations can be costly. Still, for MSPs willing to put in the effort, serving medical clients can be highly rewarding.
Unlocking healthcare opportunities
SmarterMSP.com caught up with Steve Fleurant, CEO of MSP Clair Services, to discuss acquiring new clients in the medical vertical.
“The healthcare landscape is undergoing a rapid transformation,” Fluerant remarks, adding that medical devices are becoming increasingly interconnected, generating vast amounts of sensitive data, and facing heightened regulatory scrutiny, most notably from the Health Insurance Portability and Accountability Act (HIPAA). Fluerant points out that simultaneously, many medical practices, significantly smaller clinics, and private practices struggle to attract and retain dedicated in-house IT staff with the breadth of expertise needed to navigate this evolving environment. “This situation presents a significant and growing opportunity for MSPs in 2025.”
Fleurant shares that MSPs can fill the crucial IT gaps so that doctors and other practitioners can concentrate on their craft of healing and caring for people.
“The reality is that most doctors, while highly skilled in their medical field, often lack the technical expertise to manage complex IT infrastructure and the income to pay for a highly reliable and talented IT staff,” Fluerant says, explaining that even if they could allocate substantial resources, the demands of a modern clinic’s IT needs–cybersecurity, network management, data backup, software updates, compliance, and emerging technologies–often exceed the capabilities of a single IT professional. “On the other hand, an MSP offers a team of specialists, each with deep knowledge in specific areas, providing a level of comprehensive support that’s simply unattainable for a small in-house team.”
Securing healthcare with cybersecurity, compliance & AI
Fluerant points out that MSPs can provide various critical services tailored to the medical field, which are in high demand. “Proactive cybersecurity is paramount, including implementing robust firewalls, intrusion detection systems, endpoint protection, and regular vulnerability assessments.” He shares that MSPs can help health clients with data backup and disaster recovery but also for HIPAA compliance.”MSPs can establish secure, offsite backups and develop comprehensive recovery plans, ensuring that the MSP protects and keeps accessible patient data even in the event of a major disruption.”
However, MSPs can offer potential clients a menu beyond cybersecurity into a whole suite of services.
“Beyond core infrastructure, MSPs can help clinics leverage the power of automation and artificial intelegence (AI). Clinics may require 24/7 support. Imagine a virtual assistant, powered by generative AI, available to patients around the clock,” Fluerant notes, adding that this chatbot could answer frequently asked questions, schedule appointments, provide medication reminders, and even triage basic inquiries, freeing administrative staff to focus on more complex tasks. “This feature enhances patient experience while improving operational efficiency,” He adds that clinic staff can also use such systems to enhance productivity, streamline policy, and train themselves.
How MSPs free clinics to focus on patient care
However, compliance with HIPAA is a non-negotiable requirement for medical practices. That is where MSPs can help potential customers. “MSPs specializing in healthcare understand the intricacies of HIPAA regulations. They can conduct regular audits, implement appropriate security controls, and provide ongoing training to ensure the clinic remains compliant, avoid costly penalties, and maintain patient trust.”
In the end, the value proposition of an MSP for a medical clinic extends beyond simply keeping the lights on. “The clinic can focus on its core mission by outsourcing IT management: providing quality patient care while the MSP handles the technical complexities, ensuring that systems are secure, efficient, and compliant, allowing doctors and staff to dedicate their time and energy to their patients,” Fleurant says, noting that focus translates to improved patient outcomes, increased staff satisfaction, and a stronger bottom line for the practice.
“An MSP’s proactive approach is the best way to create value for a medical clinic,” Fleurant concludes, adding that the intersection of increasingly sophisticated medical technology and the ever-present threat landscape makes specialized IT support a necessity, not a luxury.
Photo: PeopleImages.com – Yuri A / Shutterstock
