Change Healthcare Cyberattack: Doctors Face Financial Crisis

Small private practices and healthcare providers are facing serious financial challenges because the reimbursement systems they depend on are still down. This has been going on for nine days since the cyberattack (ransomware attack by a ransomware group Black cat) on Change Healthcare. These systems are crucial for getting paid for the services they provide. Without them, they’re unable to process payments from insurance companies.

As a result, they’re dealing with a growing financial burden. The longer this situation continues, the more difficult it becomes for them to manage their expenses and keep their businesses running smoothly.

The company’s tools for payment and revenue cycle management, utilized by providers and major insurers, were compromised on Feb. 21, as per filings with the U.S. Securities and Exchange Commission.

The fallout disrupts patient eligibility checks, prescription filling, and crucially, reimbursement receipt, stalling revenue streams for numerous health systems.

With no immediate workaround and uncertainty about system restoration, practices face closure threats. Law enforcement collaboration and contingency measures offer little solace amidst the chaos.

Article Source: https://www.cnbc.com/2024/02/29/change-healthcare-cyberattack-has-caused-financial-mess-for-doctors.html