Following a cyberattack on the largest health insurer in the United States last month, health care providers are still scrambling as insurance payments and prescription orders continue to be disrupted, costing physicians an estimated $100 million each day.
According to the American Medical Association, that estimate was generated by First Health Advisory, a cybersecurity company that focuses on the healthcare sector.
"This massive breach and its wide-ranging repercussions have hit physician practices across the country, risking patients' access to their doctors and straining the viability of medical practices themselves," AMA President Dr. Jesse Ehrenfeld stated in a news release.
"Against the backdrop of persistent Medicare cuts, rising practice costs and spiraling regulatory burdens, this unparalleled cyberattack and disruption threatens the viability of many practices, particularly small practices and those in rural and underserved areas," he added. "This is an immense crisis demanding immediate attention.”
How did the crisis start?
First discovered on February 21, the security breach occurred at Change Healthcare, a division of Optum Inc., which is owned by UnitedHealth Group.
UnitedHealth Group informed government officials that it had been compelled to cut off portions of Change Healthcare's extensive digital network from its clients in a report that was submitted to the U.S. Securities and Exchange Commission on that same day. Not every one of those services has been able to be restored yet.
Change Healthcare stated that it is aiming to restore the provider payment systems by the middle of March in its most recent report regarding the attack.
"UnitedHealth Group continues to make substantial progress in mitigating the impact to consumers and care providers of the unprecedented cyberattack on the U.S. health system and the Change Healthcare claims and payment infrastructure," the company noted in a statement.
The federal government intervened to provide assistance two weeks following the attack. The U.S. Department of Health and Human Services unveiled a number of support initiatives for impacted healthcare providers on March 5.
"The government is trying to create some support for health care systems -- not directly supporting patients, but the systems," Dr. Céline Gounder, an editor-at-large for public health at KFF Health News and a CBS News medical contributor, stated. "This is because without revenue coming in through the billing process, you don't have money to make payroll to be able to pay your doctors and your nurses and your janitors and all the staff that you need to run a health care system.”
Unfortunately, this incident will probably not be the last. According to federal officials, big healthcare data breaches have nearly doubled between 2018 and 2022.
