The repercussions of the Change Healthcare cyberattack are escalating, with hospitals and health systems across the nation grappling with severe financial losses. The cyberattack, discovered on February 21, 2024, has led to nationwide outages, affecting payors, physician practices, and other healthcare providers and pharmacies.
Change Healthcare, a UnitedHealth Group (UHG) Optum unit subsidiary, provides critical financial services such as billing, prescription orders, and solutions for insurance authorizations for treatments. The disruption has had severe economic consequences, with hospitals experiencing daily losses and some facing the threat of insolvency.
The American Medical Association (AMA) highlights the staggering financial impact on physicians as the crisis enters its thirteenth day. Jesse M. Ehrenfeld, the AMA’s president, expresses grave concern, citing an analysis stating that the cyberattack costs healthcare providers $100 million daily. Physicians, particularly those in small practices and rural areas, are grappling with the threat to the viability of their practices.
The California Medical Association (CMA) supports physicians, offering a comprehensive grid summarizing known impacts, workarounds, and guidance from payors. In the face of this immense crisis, the CMA provides crucial updates to its members, aiming to help physicians navigate the challenges posed by the cyberattack.
The American Hospital Association, terming it the most significant cyberattack on the U.S. healthcare system, urgently called on Congress for support. The association seeks expedited Medicare payments and financial assistance from UnitedHealth Group to alleviate the unprecedented financial burden on healthcare providers.
Mary Mayhew, president and CEO of the Florida Hospital Association, warns that Florida hospitals alone are losing hundreds of millions of dollars each week, emphasizing the critical dependence on Change Healthcare for submitting and processing claims. The fallout extends beyond financial challenges, affecting patient care as hospitals struggle with delayed payments and disruptions in essential operations.
While Change Healthcare initiated a temporary assistance program, there are concerns about its eligibility and terms. Workarounds, including manual claims submissions, are proving time-consuming and burdensome. Smaller hospitals and physician practices are disproportionately affected, with some potentially unable to weather the financial storm.
As California physicians confront the fallout, the nationwide healthcare system remains on edge, with uncertainties about the duration of the disruptions and the long-term impact on patient care and financial stability. The California Medical Association pledges ongoing support and updates for its members, recognizing the urgent need for collaborative efforts to address this unprecedented crisis.
