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CHANGE HEALTHCARE CYBER ATTACK

Impacts and Responses to Cyberattack on Change Healthcare in the U.S.

1. Overview of Cyberattack:

  • Change Healthcare, a major medical claims clearinghouse in the U.S., fell victim to a cyberattack on Feb. 21, leading to the shutdown of over 100 systems.

  • Alleghations were made that a ransomware group known as ALPHV, alias BlackCat, was behind the attack, claiming to have stolen six terabytes of data.

2. Impact on Healthcare Sector:

  • Cash flow for medical providers, psychiatry practices, and private practitioners has been severely affected, with some forced to furlough staff or use personal funds.

  • Some healthcare facilities, like the Jefferson Hills Healthcare and Rehabilitation Center, had to close due to financial repercussions.

3. Change Healthcare's Response:

  • Change Healthcare has started restoring claims-processing for pharmacies and plans to gradually restore connectivity for other services.

  • UnitedHealth Group, Change's owner, initiated an emergency funding program offering interest- and fee-free loans to medical providers.

4. Cost to Healthcare Industry:

  • The cyberattack's financial impact varies significantly, with some hospitals incurring losses of millions per day.

  • The Massachusetts Health and Hospital Association estimated that the state's healthcare system is losing around $24.2 million daily.

5. Federal Response and Involvement:

  • The U.S. Department of Health and Human Services (HHS) is investigating to determine if patient data was compromised and if UnitedHealth complied with privacy laws.

  • Several lawmakers have voiced concern and are proposing legislation for enhanced support and accelerated payments to affected providers.

6. Future Actions and Initiatives:

  • The Centers for Medicare and Medicaid Services are considering accelerated payments on a case-by-case basis to aid struggling providers.

  • HHS is facilitating meetings between insurers, medical providers, and UnitedHealth to explore further assistance options.

7. Financial Challenges and Community Impact:

  • Hospitals are experiencing significant financial challenges as insurers withhold funds, jeopardizing their functioning.

  • The California Hospital Association highlighted the considerable financial losses hospitals are incurring daily due to the cyberattack.

8. Legislative Responses and Recommendations:

  • Senators and lawmakers are advocating for legislation to provide advanced payments to providers meeting cybersecurity standards to mitigate future disruptions.

  • Efforts are being made to waive certain requirements and offer financial support to providers grappling with the aftermath of the cyberattack.

Resources:


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