SOC 2 Type II: Why This Should Be on Your Vendor Evaluation Checklist

Wondering what SOC 2 Type II is and why it matters? SOC 2 Type II audits the effectiveness of a company’s security controls over time. For post-acute agencies, choosing a tech partner with this level of compliance is critical for protecting sensitive data and meeting regulatory requirements. This article breaks down how to evaluate tech vendors, why SOC 2 Type II matters, and how it differs from SOC 2 Type I.

Key Takeaways

• Evaluate SOC 2 Type II reports from potential vendors to ensure effective data security and alignment with operational goals.

• SOC 2 Type II enhances trust and protects against breaches by demonstrating consistent, tested security practices.

• Understanding the differences between SOC 2 Type I and II helps agencies choose partners that support long-term compliance.

What to Look for When Evaluating New Technology

Choosing a vendor isn’t just about features. It’s about finding a solution that aligns with your goals, protects your data, and supports your team. Here are questions to ask when evaluating new technology to support your post-acute agency.

Start by verifying the SOC report of any potential technology provider. Make sure it is conducted by a reputable independent auditor with relevant industry experience. This validation ensures the operating effectiveness of the vendor’s internal controls. Equally important is understanding the type of SOC report: SOC 1 focuses on internal controls affecting financial reporting, while SOC 2 covers broader security criteria. A Type I SOC report assesses the design of controls at a specific time, whereas a Type II report evaluates their operational effectiveness over a period.

When reviewing a SOC 2 Type II report, pay close attention to:

• The auditor’s opinion, which provides insight into the effectiveness of the vendor’s controls and whether they are appropriately represented.

• The reporting dates, to ensure the information is current; reports older than a year might not reflect the present control environment.

• The vendor’s management assertion section, which should align with the services delivered, indicating compliance with service commitments.

Another critical aspect is reviewing the internal control activities testing results for any deficiencies noted by the auditor. This review helps identify potential gaps in the vendor’s security posture. Understanding the Complementary User Entity Controls (CUECs) and user entities is important, as these specify what controls users must implement to ensure compliance with the vendor’s SOC report and due diligence.

Finally, determine whether the SOC report is inclusive or carved-out, as this affects the accountability of both the vendor and any subservice organizations. By considering these factors, you can ensure that the technology you choose not only meets your operational needs but also aligns with your agency’s commitment to data security and compliance.

This thorough evaluation process will ultimately help you reduce costs, save time, and streamline your tech stack through gap analysis for ongoing maintenance, better performance, and security.

SOC 2 Type II Should Be on Every Vendor Evaluation Checklist. Here’s Why:

When evaluating potential technology partners, SOC 2 Type II compliance should be a non-negotiable criterion. Independent certification serves as a trust signal that the vendor has undergone a rigorous audit process and has demonstrated the effectiveness of their quality assurance controls.

The SOC 2 Type II audit involves a comprehensive evaluation of the company’s internal controls over an extended audit period, providing assurance that these controls are operating effectively. This level of scrutiny is essential for ensuring that third-party vendors can be trusted with sensitive data.

The audit scope of a SOC 2 Type II report encompasses a detailed review of the vendor’s:

• Security practices

• Availability

• Processing integrity

• Confidentiality

• Privacy controls

This comprehensive approach ensures that all aspects of data security and operational effectiveness are subject matter covered, providing a holistic view of the vendor’s capabilities.

Including SOC 2 Type II compliance in your vendor evaluation checklist ensures you choose partners who prioritize data security and operational excellence. This commitment to high standards of security and compliance can help protect your organization from potential risks and enhance your overall cybersecurity posture.

Why SOC 2 Type II Matters for Home Health and Hospice

For home health and hospice agencies, data security isn’t optional. Handling protected health information (PHI), performance data, and internal audits means your tech vendors must meet high standards.

SOC 2 Type II evaluates whether your vendor’s security practices work consistently over time. That makes it especially valuable for cloud-based platforms and SaaS solutions.

This audit assesses not just whether controls exist, but whether they work in real operational conditions. For healthcare, that assurance goes a long way in demonstrating alignment with frameworks like HIPAA and ISO 27001.

Achieving and maintaining SOC 2 Type II signals a vendor's commitment to secure operations, internal discipline, and continuous improvement. It builds trust with clients, partners, and surveyors.

Key Differences Between SOC 2 Type I and Type II

Understanding the differences between SOC 2 Type I and Type II reports is essential for making informed decisions about your technology providers. SOC 2 Type I reports focus on whether internal controls are appropriately designed at a specific moment in time. In contrast, SOC 2 Type II reports assess the ongoing performance and effectiveness of those controls over a designated timeframe, typically ranging from three to twelve months.

Organizations looking for immediate assurance often opt for SOC 2 Type I reports, especially when they lack established systems. The assessment timeline for SOC 2 Type I is a single point in time, providing a snapshot of the control environment at that moment. However, this type of report does not provide insight into how well the controls operate over time.

On the other hand, SOC 2 Type II reports have a broader scope. They examine the details of control performance throughout a specified period, offering a more comprehensive view of the operational effectiveness of the controls and control design. This continuous monitoring ensures that the controls are not only well-designed but also operating effectively over time.

The key differences between SOC 2 Type I and Type II revolve around assessment timelines and scope. While both types of reports are valuable, SOC 2 Type II provides a deeper level of assurance regarding the ongoing effectiveness of a vendor’s controls. For healthcare organizations, this continuous assurance is crucial for maintaining high standards of data security and operational reliability.

By understanding these differences, you can make more informed decisions about which type of SOC report best meets your agency’s needs. This knowledge will help you choose technology partners that align with your commitment to data security and operational excellence.

The Five Trust Services Criteria

The Trust Services Criteria, including the relevant trust services criteria, are the backbone of SOC 2 compliance, encompassing five essential principles:

• Security

• Availability

• Processing Integrity

• Confidentiality

• Privacy

Each criterion plays a vital role in ensuring a comprehensive approach to data security and operational effectiveness.

The security criterion involves protection against unauthorized access, using physical access controls. This principle ensures that only authorized individuals can access sensitive data, safeguarding it from breaches and unauthorized disclosures. An information security management system, along with security tools and measures, are critical components of this criterion, providing a robust defense against cyber threats.

The availability principle addresses the accessibility of systems, products, or services as per an agreement. This criterion ensures that systems are available for operation and use as committed or agreed, which is crucial for maintaining continuous patient care on an ongoing basis and service delivery.

Processing integrity guarantees the accuracy, completeness, validity, timeliness, and authorization of system processing and data processing. It is essential for maintaining reliable data and system operations. This principle is vital for maintaining the reliability and accuracy of data, which is essential for effective decision-making and operational efficiency.

The confidentiality criterion aims to safeguard information designated as confidential within a system, restricting access to specified individuals or organizations. Protecting sensitive information from unauthorized disclosure is crucial for maintaining trust and complying with regulatory requirements.

The privacy criterion involves numerous specific requirements to protect personal information, making it often the most demanding of the criteria. This principle ensures that personal data is collected, used, retained, and disclosed in compliance with the organization’s privacy notice and regulatory requirements.

By adhering to these Trust Services Criteria, healthcare organizations can ensure a comprehensive approach to risk management, data security, operational effectiveness, and patient safety. These criteria offer a robust framework for safeguarding sensitive data and maintaining high standards of patient care.

Benefits of Choosing a SOC 2 Type II-Compliant Vendor

• Validates internal security and operations

• Reduces risk of data breaches

• Enhances client and surveyor trust

• Demonstrates market leadership and operational rigor

• Builds a strong foundation for compliance with HIPAA, CMS, and accreditation bodies

For home health and hospice providers, choosing SOC 2 Type II-compliant vendors strengthens your organization’s overall compliance strategy and safeguards the trust you've built with patients and families.

Final Thoughts: Make SOC 2 Type II a Non-Negotiable

As more agencies adopt digital tools to manage QAPI, Infection Control, HR, and survey readiness, data protection must be part of the conversation.

SOC 2 Type II should be on every vendor evaluation checklist. It’s a signal that your technology partner doesn’t just promise security, they prove it.

Choosing vendors with this level of certification protects your operations, your team, and your patients. It reduces uncertainty and helps your organization grow with confidence.

QAPIplus is proud to be SOC 2 Type II certified, CHAP Verified, and ACHC Product Certified. We help home health and hospice agencies simplify compliance, digitize QAPI programs, and achieve survey readiness every day.

Our platform was built by clinicians who understand the challenges firsthand. With QAPIplus, you can trust that your quality and compliance data is protected, your staff is supported, and your organization is positioned to thrive.

Learn more about QAPIplus or request a demo.