$100 million per day
The Change Healthcare cyberattack is inflicting massive financial losses on the healthcare industry.
Disrupted Revenue Cycle
Delayed payments, eligibility issues, and prescription chaos strain hospitals and clinics nationwide.
High Cost of Inaction
Prolonged disruptions could jeopardize patient care, staff payroll, and medical supply chains.
News > Cyber-Attacks > CA-General
by Kevin Wood
Providers Hemorrhaging $100 Million a Day Amid Ongoing Disruption at Change Healthcare
Attack may be most expensive in history
The crippling cyberattack that paralyzed Change Healthcare systems weeks ago has left a trail of financial devastation throughout the U.S. healthcare industry. Industry sources now estimate that the ongoing disruption is costing providers nationwide an astounding $100 million in lost revenue each day.
How the Costs Mount
The losses stem from a combination of factors directly linked to Change Healthcare’s role as a critical middleman in the healthcare ecosystem:
- Billing Delays: Change Healthcare processes billions of medical claims annually. With their systems down, claims can’t be submitted, leading to delayed payments and disrupting the entire revenue cycle for hospitals and clinics.
- Eligibility Snags: Providers rely on Change Healthcare for real-time patient insurance eligibility checks. Without this, they risk providing services that may not be reimbursed, exacerbating cash flow issues.
- Prescription Fulfillment Chaos: As prescriptions can’t be verified efficiently, pharmacies face backlogs and patients suffer delays in accessing vital medications. This leads to both patient frustration and revenue loss.
- Inefficient Workarounds: Many providers are forced to resort to time-consuming and costly manual processes, such as faxing paperwork or contacting payers directly. This diverts resources and adds additional strain.
A Ripple Effect of Uncertainty
The extended outage has created a widespread cash crunch for healthcare providers already operating on tight margins. Many are left to grapple with difficult decisions:
- Delayed Payroll: Some hospitals may struggle to cover payroll for doctors, nurses, and other essential staff, potentially impacting morale and frontline care.
- Supply Chain Concerns: Providers may face difficulty purchasing crucial medical supplies if funds are unavailable.
- Long-Term Fallout: The financial strain could force some practices to reduce services or even close entirely, especially in underserved areas.
A Call for Urgent Action
While Change Healthcare and federal authorities work to restore systems and investigate the attack, the healthcare industry calls for immediate support. Providers need:
- Accelerated Payments: Payers, including Medicare, are encouraged to expedite payments to ease the burden on providers.
- Flexibility: Insurers must relax prior authorization requirements and other barriers to ensure patients receive timely care while systems are down.
- Transparency and Accountability: Change Healthcare is under scrutiny to provide comprehensive updates and address glaring vulnerabilities exposed by the breach.
The High Price of Vulnerability
The Change Healthcare attack underscores the dire consequences of lax cybersecurity in our interconnected healthcare system. As providers struggle under the weight of a $100 million daily loss, the urgency for robust defenses, contingency plans, and a coordinated industry-wide response has never been clearer.
- The Change Healthcare attack highlights the devastating financial impact of cyber threats on healthcare providers.
- BBG helps protect vital healthcare data and systems with:
- Robust security assessments
- Multi-layered defenses
- Secure backup and recovery plans
- Don’t let your practice become the next victim – Schedule a demo today: info@bbg-mn.com.