Last Updated on November 10, 2025
You deal with protected health information (PHI) every day, patient files, lab results, billing records. One mistake in how you share files can expose lives, trust, and money. In 2024 alone, over 275 million health records were exposed in large data breaches in the U.S., a 63.5% jump from the year before.
That’s not just a scary number, it means many practices, clinics, and hospitals have been hit. You can’t go halfway. You need file sharing that actually meets HIPAA’s requirements. In this article, I’ll walk you through exactly what constitutes HIPAA-compliant file sharing, show you top tools (including SmartRoom), and help you pick what fits your setup.
What is HIPAA-Compliant File Sharing
HIPAA-compliant file sharing is about meeting a set of legal and technical rules so that protected health information (PHI) stays safe and you don’t get fined.
Here are the must-have elements:
1. Signed Business Associate Agreement (BAA)
If your file sharing service is going to store or transmit PHI, it must sign a BAA with you. Without that, the service can’t legally handle PHI on your behalf. The BAA lays out responsibilities, breach reporting requirements, and how PHI must be protected.
2. Encryption in Transit & at Rest
Your data must be unreadable to anyone who intercepts it. That means:
- In transit: when files move across the internet, they should use TLS or equivalent.
- At rest: when stored on disks in the vendor’s servers, it should be encrypted.
Many breaches exploit weak encryption or misconfigured settings.
3. Access Controls & Least Privilege
You should be able to control who can view, edit, or share files. You don’t want every staff member having full access. Tools should let you assign roles (read only, editor, admin), use multi-factor authentication (MFA), and integrate with identity systems like SSO.
4. Audit Logs & Version History
HIPAA requires tracking what happens to PHI. Good file sharing tools let you see who accessed a file, when, and what they did (view, download, delete). You should also see past versions in case data was modified incorrectly.
5. Secure Link / Sharing Controls
When you share files externally, the tool should allow settings like:
- Expiration dates on links
- Password protection
- View-only or no-download modes
- Whitelisting allowed domains or IPs
These features reduce risk if a link gets misused.
6. Breach Notification, Backup, & Data Residency
If there’s a breach, the vendor must support your ability to respond, detect, report, contain. They should keep backups so you don’t lose PHI permanently. Some clients also require data stay in a certain region (data residency) for compliance or trust reasons.
Health care organizations in 2024 reported 725 large data breaches (500+ records) in the U.S. alone. But the number of records exposed skyrocketed: over 275 million health records were compromised, a 63.5% increase over the previous year.
When you build your file sharing strategy, each of the elements above must be part of your design. Other wise, you leave gaps attackers love to exploit.
HIPAA File Sharing Checklist
You might feel lost when you compare vendors. A checklist makes it easier to see if a file sharing service is really HIPAA-compliant or just marketing itself that way. Use this list before you sign anything.
- Business Associate Agreement (BAA): The vendor must sign a BAA. Without it, you can’t legally share PHI on their platform.
- Encryption at rest and in transit: Files must be encrypted on the vendor’s servers and when moving across the internet. This is a baseline for HIPAA-compliant file sharing.
- Multi-Factor Authentication (MFA) and Single Sign-On (SSO): Extra login protection keeps hackers out, even if a password leaks.
- Access controls: You should decide who can view, edit, or share files. Don’t let everyone have full rights.
- Audit logs with retention: You need a history of every access or edit. This helps with compliance and investigations if something goes wrong.
- Secure link settings: Look for options like link expiration dates, password protection, and view-only modes. These stop patient data from being overshared.
- Backups and data recovery: Accidents happen. HIPAA-compliant storage should make sure PHI isn’t lost forever.
- Staff training and policies: Even the best platform fails if your staff doesn’t know the rules. Create policies, train your team, and review access regularly.
Following this checklist helps you avoid mistakes that can cost you. The average healthcare data breach cost $10.93 million in 2023, the highest across any industry, according to IBM’s Cost of a Data Breach Report.
HIPAA-Compliant File Sharing Tools Comparison Table
It’s tough to compare HIPAA-compliant file sharing tools at a glance. To make it easier for you, here’s a table that highlights the most important features you should be looking for:
| Vendor | BAA Offered | Encryption (Rest + Transit) | Link Controls | Audit Logs | Best For | Starting Price* |
| Egnyte | Yes | Yes | Yes | Yes | Mid to large healthcare orgs | From ~$20/user |
| Box (Healthcare) | Yes | Yes | Yes | Yes | Enterprise collaboration | From ~$15/user |
| OneDrive/SharePoint | Yes | Yes | Yes | Yes | Microsoft 365 clinics/hospitals | From ~$6/user |
| Google Drive (Workspace) | Yes | Yes | Yes | Yes | Smaller practices on Google | From ~$12/user |
| ShareFile | Yes | Yes | Yes | Yes | Secure patient intake | From ~$10/user |
| FileCloud | Yes | Yes | Yes | Yes | On-premise / hybrid setups | Custom pricing |
| Sync.com | Yes | Yes (end-to-end) | Yes | Limited | Privacy-focused orgs | From ~$8/user |
| Dropbox Business (Enterprise) | Yes | Yes | Yes | Yes | Familiar UI, large teams | From ~$24/user |
| SmartRoom | Yes | Yes | Yes | Yes | Hospitals, research, VDR use | Custom pricing |
| Kiteworks / Proton Drive | Yes | Yes | Yes | Yes | Strict compliance needs | Custom pricing |
Pricing may vary by plan, user count, and storage needs. Always confirm current rates and HIPAA availability directly with the vendor.
Best HIPAA-Compliant File Sharing Tools in 2026
You have plenty of choices when it comes to HIPAA-compliant file sharing, but not every tool will fit your needs. Below, I’ll walk you through the most trusted solutions, what they’re good at, and where you may hit limits.
SmartRoom
SmartRoom is more than a file sharing tool, it’s a secure virtual data room. It’s designed for organizations that need strict compliance and detailed reporting. You get granular permission settings, activity tracking, and a BAA. It’s often used by hospitals and research groups that handle high volumes of PHI across many stakeholders.
- Strengths: enterprise-grade security, detailed auditing, compliance built-in.
- Drawbacks: higher cost; more than smaller clinics may need.
- Best for: hospitals, research institutions, and multi-party healthcare projects.
Egnyte
Egnyte is built for organizations that need strong governance. You get detailed access controls, file classification for PHI, and reporting features that help you stay audit-ready. It also integrates well if you have hybrid storage setups.
- Strengths: granular governance, healthcare focus, data classification tools.
- Drawbacks: cost can rise as your team grows.
- Best for: mid to large healthcare providers who need compliance plus scalability.
Box (Healthcare Plans)
Box is a popular collaboration platform that works well for HIPAA compliance when you’re on the right plan. You get watermarking, version tracking, and integrations with hundreds of apps. But, to unlock HIPAA support, you must sign a BAA and choose a healthcare-ready plan.
- Strengths: strong ecosystem, detailed controls, watermarking.
- Drawbacks: HIPAA compliance only on higher tiers.
- Best for: large organizations already invested in Box.
Microsoft OneDrive / SharePoint
If you already use Microsoft 365, OneDrive and SharePoint make sense. They’re covered by Microsoft’s BAA, and when you configure sharing settings correctly, they meet HIPAA requirements. Just remember, misconfiguration is the biggest risk.
- Strengths: integrates with Teams and Office apps, included in most plans.
- Drawbacks: requires careful setup to avoid risky sharing.
- Best for: clinics and hospitals using the Microsoft stack.
Google Drive (Workspace)
Google Workspace can be HIPAA-compliant if you sign a BAA and tighten admin controls. You can restrict file sharing outside your domain and use Data Loss Prevention (DLP) rules. It’s affordable, but you must stay on top of your settings.
- Strengths: simple interface, affordable, easy collaboration.
- Drawbacks: must be locked down by admins; defaults are too open.
- Best for: small to mid-size practices on Google Workspace.
ShareFile by Citrix
ShareFile stands out for how it handles secure uploads and requests. If you collect patient forms or share files with partners, you’ll like the polished request features. Citrix also provides a BAA.
- Strengths: patient-friendly file requests, flexible sharing.
- Drawbacks: not as feature-rich for deep collaboration.
- Best for: practices focused on secure patient intake and referrals.
FileCloud
FileCloud gives you options: cloud, self-hosted, or hybrid. You keep more control over where PHI lives, which is helpful if your compliance policy is strict about storage location. The tradeoff is that self-hosting takes more IT work.
- Strengths: flexible deployment, granular controls, compliance reporting.
- Drawbacks: more maintenance if you host yourself.
- Best for: IT teams who want direct control of PHI storage.
Sync.com
Sync.com is privacy-first. It uses end-to-end encryption, so even the vendor can’t read your files. That’s powerful for security, but sometimes it limits features like real-time collaboration or detailed audits.
- Strengths: zero-knowledge encryption, simple pricing.
- Drawbacks: fewer admin insights compared to others.
- Best for: organizations that value privacy above all else.
Dropbox Business (Enterprise Tier)
Dropbox is easy to use, and many staff members already know it. But only the Enterprise plans support HIPAA compliance with a signed BAA. You’ll also need to configure admin policies to avoid oversharing.
- Strengths: familiar interface, strong sync features.
- Drawbacks: HIPAA support limited to top-tier plans.
- Best for: larger practices that want a well-known platform.
Kiteworks / Proton Drive
These tools are less common but powerful if you need maximum assurance. Kiteworks focuses on secure managed file transfer with deep audit logging. Proton Drive offers end-to-end encryption with HIPAA support under a BAA.
- Strengths: strong for regulated partner exchanges.
- Drawbacks: narrower use cases, not for casual collaboration.
- Best for: highly regulated organizations with strict compliance demands.
This lineup gives you flexibility. If you’re a smaller clinic, Google Drive or ShareFile might be all you need. If you’re running a hospital network, Egnyte, SmartRoom, or Box give you the governance you can’t afford to skip.
How to Implement HIPAA-Compliant File Sharing Tools Safely
Setting up your HIPAA-compliant file sharing tool the right way is just as important as picking the tool itself. Here’s how you can roll it out step by step.
1. Map Your PHI Workflows
Start by looking at how your team uses patient data today. Identify where PHI moves, patient intake, billing, lab results, and referrals. This helps you design secure workflows inside your new platform.
2. Control Access
Limit access to only what each person needs. Use multi-factor authentication (MFA) and connect the tool to your identity system if you can, such as Single Sign-On (SSO). For example, a nurse may need to view lab reports but not delete them.
3. Turn On Security Features
Don’t leave defaults open. Enable:
- Expiring links
- Password protection on shared files
- Audit logs and reporting
These settings lower your risk of mistakes and misuse.
4. Train Your Staff
Even the best tool fails if people use it the wrong way. Train your staff on HIPAA rules, file sharing policies, and phishing awareness. Most breaches come from human error. In fact, 74% of data breaches involve the human element, stolen credentials, phishing, or mis-sent files
When you combine the right technology, strict configuration, and staff training, you create a safe system that protects both your patients and your practice.
FAQs
You probably have questions about what makes file sharing HIPAA-compliant. Here are answers to some of the most common ones.
Is Google Drive really HIPAA-compliant?
Yes, but only under certain conditions. You must be on a Google Workspace plan that allows you to sign a Business Associate Agreement (BAA) with Google. You also need to configure admin controls, such as restricting external sharing and requiring MFA, to keep PHI secure.
Does Microsoft sign a BAA for OneDrive and SharePoint?
Yes. Microsoft includes a BAA with many Microsoft 365 plans. Once the BAA is in place, OneDrive and SharePoint can be used for HIPAA-compliant file sharing. But, just like with Google, you have to configure security settings correctly to prevent accidental exposure.
Do you absolutely need end-to-end encryption?
Not always. HIPAA requires strong encryption at rest and in transit. End-to-end encryption (E2EE) adds another layer, but it may limit features like advanced audit logging or collaboration. If you choose an E2EE tool, balance the extra privacy against the need for monitoring and usability.
Why are audit logs so important?
Audit logs record every action taken on a file, who viewed it, who downloaded it, and when. HIPAA’s Security Rule requires this accountability. Without logs, you have no way to prove compliance or investigate suspicious activity.
Is a BAA always mandatory?
Yes. If a vendor won’t sign a BAA, you cannot store or share PHI with them, even if their system looks secure. The BAA is the legal safeguard that spells out each party’s responsibilities.
Conclusion
Protecting patient data goes beyond meeting HIPAA rules, it’s about earning and keeping patient trust. The right HIPAA-compliant file sharing platform helps you share PHI securely, avoid costly breaches, and give your staff confidence in the tools they use every day.
If you’re looking for a solution that does more than the basics, SmartRoom gives you enterprise-grade security, detailed audit trails, and strict compliance built in. It’s designed for healthcare providers, hospitals, and research organizations that need more than simple cloud storage.
Don’t leave your practice exposed. Explore SmartRoom today and see how it can give you both security and peace of mind.
Matthew Small is the Vice President of Strategic Sales and Alliances at SmartRoom, where he builds partnerships and leads strategic efforts to deliver cutting-edge virtual data room solutions for dealmakers. With a strong background in enterprise sales and channel development, Matthew is passionate about unlocking new growth opportunities and helping clients navigate complex transactions with greater speed, security, and confidence.
