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Post: Cyberattack on Major US Healthcare Tech Company Causes Nationwide Disruptions
A significant cyberattack has impacted a leading U.S. healthcare technology firm, causing widespread concern over the security of patient data and leading to delays in billing and essential services. Healthcare providers nationwide are grappling with the fallout from this attack on the tech giant, which is crucial for the functionality of billing and care-authorization systems. The incident, which could hinder hospital discharge processes, was highlighted by a prominent hospital association.
Change Healthcare, the company targeted and owned by UnitedHealth Group, disclosed on Thursday that the ransomware group ALPHV, also known as Blackcat, has claimed responsibility for this security breach. The company, which acknowledged the attack on February 21, is in the process of evaluating the breach’s impact, which has disrupted its operations across the United States. Change Healthcare plays a pivotal role in the healthcare industry, handling 14 billion transactions annually, and confirmed that its systems along with those of Optum, UnitedHealthcare, and UnitedHealth Group have been compromised. However, it remains unclear whether a ransom was paid or negotiated with the attackers.
The cyberattack has immediate and tangible effects, notably causing prescription delays as reported by Ben Teicher, a spokesperson for the American Hospital Association. While Change Healthcare has mentioned that most pharmacies have resorted to manual workarounds, the full scope of the attack’s consequences is still emerging. This includes significant challenges in processing claims, billing, and verifying insurance coverage, potentially affecting worker payments and the procurement of medical supplies and medications.
The Healthcare Association of New York State has reported various operational difficulties among health systems, such as verifying patient eligibility, processing pharmacy prescriptions, and maintaining normal cash flow. The attack not only disrupts immediate healthcare services but also poses a long-term risk to hospital operations and patient care.
Requests for comments from several major healthcare providers in multiple states have gone unanswered, while cybersecurity experts note a rising trend in ransomware attacks, particularly targeting the healthcare sector. This incident follows another significant attack on a children’s hospital in Chicago, highlighting the growing cybersecurity threats in healthcare. The FBI is aware of the situation but has not provided specific details due to the ongoing nature of the investigation. According to Allan Liska, a threat intelligence analyst, efforts to contain the attack are underway, with hopes to mitigate further impact on patient care as recovery efforts continue.
Cyberattack on Change Healthcare causes nationwide pharmacy disruptions
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About the Author: Bernard Aybout (Virii8)
