Key takeaways
- Location matters: Know where your data is physically stored. Cross-border hosting can expose you to foreign laws and compliance risks.
- Ownership and access: Ensure your organization owns the data and can control access with granular permissions and audit logs.
- Security by design: Choose vendors that embed security from day one and are supported by certified experts working across teams to maintain privacy, compliance, and a strong security culture.
Where does your data really live?
Healthcare organizations handle some of the most sensitive information in the world. But here’s a question that often goes unasked: Do you know where your data is stored and who can access it?
In an era of rising cyber threats, foreign data laws, and growing “Buy Canadian” priorities, data sovereignty is more than a compliance checkbox—it’s a strategic necessity. If you’re evaluating vendors or reviewing your current systems, here are five critical questions to ask.
1. Where is your data physically stored?
Data residency matters. Hosting patient and operational data outside Canada can expose organizations to foreign regulations like the U.S. CLOUD Act, which allows government access to data stored on U.S. servers. This is regardless of whether the data belongs to Canadian citizens or entities.
This creates gaps and openings to accessing your sensitive data if your vendor keeps storage outside of reach and best practices.
Checklist of questions to consider:
- Is your data hosted exclusively in Canada?
- Does your vendor disclose hosting locations clearly?
- Are backups and redundancy also within Canadian borders?
Where Petal stands:
Petal hosts all client data exclusively in Canada across multiple time zones for redundancy and resilience, including backups. Backups are tested regularly to ensure recoverability as needed. This process is audited annually for compliance.
→ Learn more about Petal’s security and compliance standards.
2. Who owns your data?
Ownership should never be ambiguous. Your organization—not your vendor—should retain full control over patient data, including permissions and access rights. Checking your vendor’s terms of service, security and compliance documentation, and additional contract agreements before and after implementation are essential to maintaining ownership of your data.
Checklist of questions to consider:
- Does your contract explicitly state that you own your data?
- Can you review and access your vendor’s security standards and server locations?
Where Petal stands:
Petal guarantees full data ownership for clients. Access is managed through role-based permissions, and every interaction is logged for transparency and compliance.
3. How is your data protected?
True security is constant. It’s engineered before launch and is ongoing as improvements and environments change. Choose solutions built with compliance and privacy at their core, and then strengthened. This means processes and policies drive overall protection from day zero and are updated regularly, because security and data protection never stops.
Checklist:
- Is the platform compliant with recognized frameworks like SOC 2 Type 2?
- Does it use AES-256 encryption at rest and TLS 1.2+ in transit?
- Are there multi-factor authentication and session timeout policies?
- Is there continuous monitoring for abuse or anomalous behavior?
Where Petal stands:
Petal follows a “security by design” approach, leveraging the FHIR (Fast Healthcare Interoperability Resources) standard for interoperability and privacy. Our platforms are SOC 2 Type 2 certified, use AES-256 and TLS 1.2+, and include multi-factor authentication with continuous monitoring.
4. Does your vendor follow interoperability standards?
Healthcare systems don’t operate in isolation. Hospital departments, health authorities, and clinicians need to communicate effortlessly for efficiency and speed of access to care. Standards like FHIR ensure secure, structured data exchange while maintaining privacy.
Checklist:
- Does the platform support FHIR for interoperability?
- Are security and privacy integrated into the design process?
- Is there collaboration with compliance officers and legal teams?
Where Petal stands:
Petal integrates FHIR standards into its architecture from the earliest design stages, working closely with Data Protection Officers, legal teams, and security experts to ensure compliance and interoperability.
5. Can you trust their transparency?
Trust is built on clarity and accountability. Annual independent audits, published compliance reports, and clear communication about hosting and security practices are non-negotiable.
Checklist:
- Does your vendor undergo independent audits every year?
- Are certifications (SOC 2, ISO 27001) publicly available?
- Is there a clear incident response plan and 24/7 monitoring?
Where Petal stands:
Petal undergoes annual independent SOC 2 audits and aligns with global frameworks like GDPR and ISO 27001. Our systems are monitored 24/7, and we maintain a documented incident response plan for rapid action.
Why all this matters
Healthcare organizations face mounting challenges: staffing shortages, rising costs, and increasing cyber threats. Amid these pressures, uncertainty about where your data resides—and who can access it—can put your reputation and compliance at risk.
There needs to be a foundation for trust, security, and operational resilience. Asking these questions now can save you from costly headaches later.
Closing thought
If you can’t answer these five questions confidently, it’s time to start asking your vendor—or your internal team. Knowing where your data lives isn’t just good practice; it’s essential for protecting patients and maintaining compliance.
Secure your data today.
