In 2024, the healthcare sector faced a marked rise in cyberattacks and data breaches, exemplified by significant incidents like the ransomware attack on Change Healthcare, which disrupted payment processes affecting around 100 million Americans and triggered federal security investigations. Similarly, Ascension, a major nonprofit health system, experienced operational paralysis due to another ransomware attack, resulting in a $1.1 billion net loss. Cyber threats were not limited to large organizations; smaller healthcare facilities also suffered breaches. These events prompted calls for enhanced cybersecurity measures within the industry.

Healthcare Cyberattacks Surge in 2024, Exposing Industry Vulnerabilities Healthcare Dive

Health spending in the U.S. increased by 7.5% in 2023, totaling $4.9 trillion, as reported by the Centers for Medicare & Medicaid Services (CMS). This growth is notable compared to the 4.6% rise in 2022, primarily fueled by an 11.5% increase in private health insurance and an 8.1% rise in Medicare spending, while Medicaid growth slowed to 7.9%. A key driver was the rebound in traditional fee-for-service Medicare, which grew by 1.7%, alongside significant growth in Medicare Advantage plans, now comprising 52% of Medicare expenditures. This increase in spending contributed to a record high of 92.5% of insured individuals in the U.S. in 2023.

U.S. Health Spending Soars 7.5% to $4.9 Trillion in 2023 MedPage Today

The Department of Veterans Affairs (VA) plans to recommence its Electronic Health Record (EHR) system rollout in fiscal year 2025 after a 18-month suspension due to performance challenges. Following a halted deployment in April 2023, recent improvements at five existing sites and successful implementation at a sixth site with the Defense Department have led to renewed optimism among VA officials. Senior officials, including Kurt DelBene, advocate for an incremental approach to EHR modernization to better address the needs of veterans and VA staff. Notably, updates have resulted in a 50% decrease in system crashes and lags, alongside a 60% drop in incident tickets, indicating progress in operational reliability.

VA to Resume Electronic Health Record Rollout After Performance Improvements Federal News Network

Jennifer Wendel, recently appointed as the Chief Information Officer for HHS, has outlined her priorities for 2025, focusing on enhancing cybersecurity, improving customer experience, and investing in workforce training. With 28 years of federal service, including one year as acting CIO, Wendel emphasizes the need to protect health records and sensitive data by continuously assessing cybersecurity measures, training employees to recognize threats like phishing, and maturing incident response processes. She also plans to promote digital literacy among staff to support cybersecurity efforts and reduce insider threats. Additionally, Wendel aims to modernize grants.gov to simplify the grant application process, improving accessibility for applicants and efficiency for grant makers.

New HHS CIO Prioritizes Cybersecurity and Workforce Training for 2025 GovCIO Media

In 2024, the healthcare sector faced a marked rise in cyberattacks and data breaches, exemplified by significant incidents like the ransomware attack on Change Healthcare, which disrupted payment processes affecting around 100 million Americans and triggered federal security investigations. Similarly, Ascension, a major nonprofit health system, experienced operational paralysis due to another ransomware attack, resulting in a $1.1 billion net loss. Cyber threats were not limited to large organizations; smaller healthcare facilities also suffered breaches. These events prompted calls for enhanced cybersecurity measures within the industry.

Healthcare Cyberattacks Surge in 2024, Exposing Industry Vulnerabilities Healthcare Dive

Health spending in the U.S. increased by 7.5% in 2023, totaling $4.9 trillion, as reported by the Centers for Medicare & Medicaid Services (CMS). This growth is notable compared to the 4.6% rise in 2022, primarily fueled by an 11.5% increase in private health insurance and an 8.1% rise in Medicare spending, while Medicaid growth slowed to 7.9%. A key driver was the rebound in traditional fee-for-service Medicare, which grew by 1.7%, alongside significant growth in Medicare Advantage plans, now comprising 52% of Medicare expenditures. This increase in spending contributed to a record high of 92.5% of insured individuals in the U.S. in 2023.

U.S. Health Spending Soars 7.5% to $4.9 Trillion in 2023 MedPage Today

The Department of Veterans Affairs (VA) plans to recommence its Electronic Health Record (EHR) system rollout in fiscal year 2025 after a 18-month suspension due to performance challenges. Following a halted deployment in April 2023, recent improvements at five existing sites and successful implementation at a sixth site with the Defense Department have led to renewed optimism among VA officials. Senior officials, including Kurt DelBene, advocate for an incremental approach to EHR modernization to better address the needs of veterans and VA staff. Notably, updates have resulted in a 50% decrease in system crashes and lags, alongside a 60% drop in incident tickets, indicating progress in operational reliability.

VA to Resume Electronic Health Record Rollout After Performance Improvements Federal News Network

Jennifer Wendel, recently appointed as the Chief Information Officer for HHS, has outlined her priorities for 2025, focusing on enhancing cybersecurity, improving customer experience, and investing in workforce training. With 28 years of federal service, including one year as acting CIO, Wendel emphasizes the need to protect health records and sensitive data by continuously assessing cybersecurity measures, training employees to recognize threats like phishing, and maturing incident response processes. She also plans to promote digital literacy among staff to support cybersecurity efforts and reduce insider threats. Additionally, Wendel aims to modernize grants.gov to simplify the grant application process, improving accessibility for applicants and efficiency for grant makers.

New HHS CIO Prioritizes Cybersecurity and Workforce Training for 2025 GovCIO Media