The main purpose of the research is to find out the underlying cause of hacking in American healthcare industry. In addition to this, finding out the types of hacking that the industry is facing and developing appropriate solutions is also the agenda of the research. This research is significant on the threshold that it will provide deep and comprehensive insight on the factors that is governing the increasing practice of hacking in the American healthcare system. This research can be referred by the authority while developing measures to combat the situation. This paper is aiming to solve the problem of hacking in the health care sector of America by researching deep in the matter and providing solutions to stop it. The main thesis of the research is that hacking is affecting the credibility and functionality of healthcare organizations. In order to enrich the research, secondary data collection method is used so that the existing opinions, theories and measures can be congregated and analyzed to reach an inference.