Change Healthcare cyberattack to impact wages, says AHA
WASHINGTON, UNITED STATES — The American Hospital Association (AHA) claims that the cyberattack on Change Healthcare will have a significant impact on the hospital system’s finances.
In a letter addressed to the U.S. Department of Health and Human Services (HSS), the AHA stated that its members said that a significant portion of their claims remain unprocessed. Due to the attack, they cannot verify to see if a patient’s insurance covers a potential treatment.
“Their interrupted technology controls providers’ ability to process claims for payment, patient billing, and patient cost estimation services,” the letter reads. “Any prolonged disruption of Change Healthcare’s systems will negatively impact many hospitals’ ability to offer the full set of health care services to their communities.”
The AHA added that the cyberattack could also affect Change Healthcare’s payroll schedules for its healthcare staff, who are responsible for providing various services such as procuring medicines and supplies.
“In addition, replacing previously electronic processes with manual processes will add considerable administrative costs on providers, as well as divert team members from other tasks,” the letter continues.
The cyberattack at Change Healthcare commenced in the early hours of February 21, which caused outages at pharmacies and healthcare facilities. To get rid of the hackers, Change Healthcare took its systems offline.
In its latest statement of February 28, Change Healthcare said that it is still taking cautionary measures before reverting its system back online.
According to Reuters, the ransomware gang BlackCat is behind the attack. Its modus involves encrypting data and holding it hostage in exchange for lucrative sums.
The gang has attacked major businesses, including MGM Resorts International and Caesars Entertainment.
In December 2023, U.S. officials seized extortion websites associated with the ALPHV, as well as hundreds of digital keys used to decrypt victim data. BlackCat had threatened to retaliate by attacking critical infrastructure providers and hospitals.
