Change Healthcare resumes $14Bn claims processing after cyberattack

WASHINGTON, UNITED STATES — Medical firm Change Healthcare has announced plans to restore processing a backlog of $14 billion in medical claims following a cyberattack last month. 

Change Healthcare said it had brought its assurance claims preparation system back online on March 18 and aims to reinstate its largest clearinghouse, Relay Exchange, over the weekend of March 23rd. 

The UnitedHealth Group subsidiary has also advanced more than $2.5 billion to affected providers at no cost through a Temporary Funding Assistance Program.

The ransomware attack, which occurred on February 21st, crippled the company’s systems and disrupted healthcare operations nationwide. 

The cyberattack has led to widespread reimbursement and pharmacy disruptions for hospitals, health systems, and medical practices across the country. 

The American Hospital Association (AHA) earlier said the cyberattack on Change Healthcare would have a significant impact on the hospital system’s finances, especially the payroll schedules of healthcare staff, who are responsible for providing various services such as procuring medicines and supplies.

Additionally, an AHA survey found that the cyberattack has affected the cash flow at 80% of hospitals, with 60% of those hospitals reporting an impact on revenue of at least $1 million per day. 

“Across the country, this cyberattack has been very disruptive,” says Catherine ‘Mindy’ Chua, DO, CMO of Elkins, West Virginia–based Davis Health System. 

“A lot of the coupons that patients use to take money off of their copays for their pharmaceuticals are not able to be used because they cannot be verified.”

She noted that because of the disruption, they could not do prior authorizations required by insurance companies for certain tests.

“We cannot schedule those tests without the prior authorization because the patient may end up being responsible for the cost of the test. So, tests are being put off, which affects patients and revenue cycle,” she told HealthLeaders.