The Impact of the Change Healthcare Cyberattack: A Look Ahead

The February 2024 cyberattack on Change Healthcare, a critical player in US healthcare billing, sent shockwaves through the industry. While progress has been made in resuming claims processing, the attack's impact continues to be felt. This blog post will delve into the current state of recovery, the cyberattack's scope, and the road ahead for healthcare providers.

Liquidity Concerns for Healthcare Providers

Smaller clinics, especially those serving rural communities, face a liquidity crisis. According to an AHA survey, 94% of hospitals reported feeling the financial impact of the attack, with over half reporting a serious impact. These facilities often operate on tighter margins and may struggle to weather the financial disruption caused by delayed payments.

Massachusetts hospitals alone lost at least $24 million daily due to the cyberattack, and some reports indicate larger health systems bled over $100 million daily. Kodiak Solutions analysis estimated a staggering $6.3 billion in delayed payments for hospitals reporting data. Providers across the board saw a drop of more than one-third in claims submitted to payers. This strain has escalated to the extent that lawsuits against United Health were initiated in March.

The Biden administration acknowledges this concern and emphasizes the importance of maintaining cash flow within the system to ensure continued access to care.

Unveiling the Scope of the Change of Healthcare Cyberattack

Largest Healthcare Cyberattack in US History: This attack wasn't just disruptive; it was unprecedented. The American Hospital Association (AHA) calls it the most significant cyberattack on US healthcare ever. This highlights the vulnerability of the healthcare sector and the potential for devastating consequences from cyberattacks.

Billions in Disrupted Payments: Estimates suggest "billions of dollars" stopped flowing to healthcare providers due to the cyberattack. This disruption impacted hospitals and clinics across the country, straining their financial resources and jeopardizing their ability to deliver quality care.

A Glimpse into the Attack's Impact

Financial Strain on Healthcare Providers: The financial fallout has been significant. Some clinics, like the cancer treatment center in Oregon, faced the risk of closure due to delayed payments. Patients also felt the pinch, with individuals in Colorado forced to cover medication costs out-of-pocket.

Patient Care Affected – Delays in Prescriptions and Treatment Access: Disruptions in billing and insurance verification caused delays in obtaining prescriptions and approvals for treatments. This impacted patient care and potentially caused anxiety and frustration for those seeking medical attention.

Support Measures to Ease Financial Strain

Beyond the UnitedHealthcare group's internal recovery efforts, several initiatives aim to alleviate the financial burden on healthcare providers impacted by the Change Healthcare cyberattack.

Financial Strain on Smaller Providers: This attack is having a disproportionate impact on smaller providers, and credit rating agencies like Fitch Ratings warn of potential downgrades.?

Data Breach: ALPHV/BlackCat, the ransomware group behind the attack, claimed to have stolen a massive six terabytes of data, potentially including sensitive patient information.

Government Response: The Department of Health and Human Services (HHS) launched an investigation into HIPAA compliance in the wake of the attack. Additionally, HHS accelerated payments to hospitals and encouraged relaxing prior authorizations to ease the financial burden. Recognizing the ongoing challenges, Congress urged HHS to ensure payments are reaching providers and address patient medication access.

The Road to Recovery: Protecting Your Practice Despite Cyber Threats

Despite the challenges posed by cyber threats, Transcure stands ready to support your practice's recovery journey. Our comprehensive RCM services are designed to resume claim submissions and overcome reimbursement delays, maximize collection efficiency, and streamline aging claims processing.?

With our performance-based billing model, you can rest assured that you're only paying for results. Trust Transcure will safeguard your practice's financial health in the face of cyber threats, providing you with the peace of mind to focus on delivering quality patient care.