Health Excel

Healthcare Providers Struggle Amid Lingering Impact of Change Healthcare Cyberattack

Written by PNN | Apr 10, 2024 3:03:00 PM

In the aftermath of the Change Healthcare cyberattack, hospitals and healthcare providers are still grappling with the fallout, which has been going on for more than a month after the initial incident. UnitedHealth Group, the parent company of Change Healthcare, has announced the distribution of $3.3 billion in payments to providers, yet challenges persist.

Among the most significant issues encountered by hospitals are disruptions in payments for services, delays in submitting claims, and difficulties in processing prescriptions, all stemming from the cyberattack.

In response to these ongoing challenges, the U.S. Department of Health & Human Services and the Administration for Strategic Preparedness & Response have released a resource guide to assist healthcare providers in navigating the disruptions caused by the cyberattack. The guide aims to provide support from health plans and payers, particularly for health centers, pediatricians, infusion centers, and home-based providers experiencing cash flow disruptions.

The American Hospital Association survey revealed that nearly all of the nation's hospitals (94%) have experienced financial difficulty due to the cyberattack. Approximately 60% of hospitals reported revenue impacts of $1 million per day or more, with three-quarters stating that patient care has been affected.

Furthermore, medical groups and cancer practices have also felt the repercussions of the cyberattack, exacerbating the strain on healthcare systems.

In response to mounting pressure, the federal government has initiated efforts to accelerate Medicare payments to hospitals and health systems. However, hospitals have urged Congress to expedite aid, expressing the need for timely assistance beyond the limited scope of current measures.

Meanwhile, members of Congress, including U.S. Rep. Jamie Raskin, have raised concerns about the cyberattack’s lack of transparency. In letters to UnitedHealth Group CEO Andrew Witty and HHS Secretary Xavier Becerra, lawmakers have demanded information on the attack's scope, its impact on private health information, and measures to enhance cybersecurity.

UnitedHealth has taken steps to mitigate the impact of the cyberattack, including suspending prior authorizations for most outpatient services and reviewing utilization of inpatient admissions for Medicare Advantage plans.

As the healthcare industry grapples with the aftermath of the cyberattack, efforts to address the ongoing challenges providers face remain a top priority for both federal agencies and Congress.