Healthcare Providers Hit by Frozen Payments in Ransomware Outage

Posted under: SMB
Date: 2024-03-01
Healthcare Providers Hit by Frozen Payments in Ransomware Outage

Healthcare providers in the US are facing financial difficulties following a ransomware outage at UnitedHealth Group's Change Healthcare unit. The hackers gained access to the unit, which is crucial for making and clearing insurance claims. The outage affected electronic pharmacy refills and insurance transactions, particularly among independents. Small businesses, including therapists and laboratories, are unable to process claims and are racking up thousands of dollars in overdue payments. The American Hospital Association (AHA), which represents nearly 5,000 hospitals, healthcare systems, networks, and other providers, has reported that large, well-resourced hospitals with alternate technologies and sufficient cash reserves will be able to sustain the outage initially and on a longer basis. The impact of the hack on payments is expected to be felt by thousands, if not hundreds, of providers, who will see their cash flow grind to a halt.

Read more at: www.usnews.com