UnitedHealth cyberattack leaves hospitals unable to process claims: report

Last week’s cyberattack on UnitedHealth’s (NYSE:UNH) Change Healthcare unit, allegedly by a ransomware group, has reportedly left many US hospitals, pharmacies and healthcare providers unable to process claims, refills and payments.

The American Hospital Association, or AHA, told Reuters that some hospital chains have been forced to absorb costs upfront due to the disruption. The association represents around 5,000 hospitals and healthcare networks.

The AHA’s cybersecurity adviser, John Riggi, said that it can take as long as 30 days for healthcare organizations to restore core operations after a high-level ransomware attack. He added that hospitals were “anxiously” waiting for Change to introduce workarounds, Reuters said.

Smaller healthcare organizations, such as therapy providers and independent labs, told Reuters they are already worried about running out of cash due to disruptions in service.

A UnitedHealth spokesperson told Reuters that claims submissions had returned to pre-attack levels and that providers can seek out other clearinghouses to process their claims.

Last week, UnitedHealth disclosed in an SEC filing that a “suspected nation-state associated cyber security threat actor” had a gained access to Change’s IT systems. UnitedHealth said it believed the disruption was limited to its Change unit and had not determined if the incident would materially impact the company.

Since then, Reuters has reported that a ransomware group called Blackcat, also known as ALPHV, was behind the attack.

Yesterday, Reuters reported that the group boasted online that it was able to steal “millions” of records, including data from organizations such as Medicare, the US military’s TriCare network and CVS Health (CVS).  TriCare has reported that all of its US military pharmacies were impacted.

Blackcat has a track record of going after corporations, including attacks last year on MGM Resorts (MGM) and Caesars Entertainment (CZR). Clorox (CLX) was also the victim of a ransomware attack last year, according to Reuters.

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