The recent cyberattack on Change Healthcare has exposed significant vulnerabilities within the healthcare sector, particularly highlighting the severe consequences of such attacks on healthcare providers' ability to operate efficiently. This attack, attributed to the ALPHV group and its BlackCat ransomware, has significantly disrupted the processing of prescriptions, patient data sharing, and claims between providers and payers, causing widespread operational difficulties and financial losses. The incident emphasizes the urgency for enhanced cybersecurity measures, transparency in incident reporting, and the development of robust contingency plans to manage the aftermath of cyberattacks effectively. Furthermore, it underscores the need for healthcare organizations to bolster their defenses against potential cyber threats and prepare for the possibility of similar events in the future.

Lawsuits start rolling in over Change Healthcare hack

Mar 7, 2024Becker's Hospital Review

Lawsuits have begun to be filed against Change Healthcare, a subsidiary of UnitedHealth Group, in the wake of a massive cyberattack affecting hospitals, physician offices, and pharmacies across the United States. Court records reveal that at least five federal lawsuits are seeking class-action status, with three lodged in Tennessee and two in Minnesota. These legal actions highlight allegations against the company for failing to maintain adequate security measures, not disclosing weaknesses in their security protocols, and consequently, putting patients' data and financial well-being at risk. In particular, one lawsuit from Minnesota points to the plaintiff's direct experience of inconvenience and potential financial burden due to the cyberattack's impact on Change Healthcare's network. The complaint details the plaintiff's struggle to use health insurance for medication, facing high upfront costs with the promise of later insurance claims processing that remains uncertain. This series of lawsuits underscores the severe consequences of cyberattacks on healthcare infrastructure, not only in operational disruptions but also in the tangible impacts on individuals' lives. UnitedHealth Group has responded to the crisis by focusing on the investigation and recovery of Change Healthcare's operations, amidst predictions that the lawsuit count could rise significantly, marking this as potentially the largest cybersecurity breach in the healthcare industry to date.

HHS Statement Regarding the Cyberattack on Change Healthcare

Mar 7, 2024U.S. Department of Health & Human Services

HHS addresses Change Healthcare cyberattack: coordinating responses, ensuring health care operations continuity, expediting provider support, and strengthening cybersecurity across the health ecosystem.

Fee-For-Service: Predominant, Winning & Stupid – The Health Care Blog

Mar 7, 2024The Healthcare Blog

Fee-for-service, criticized for inefficiency and greed, plagues U.S. healthcare, affecting insurers, providers, and patients, bolstering systemic problems and resisting value-based care despite alternatives.

Healthcare orgs urge federal intervention in the wake of cyberattack

Mar 6, 2024McKnights Senior Living

Change Healthcare cyberattack causing significant billing, claims issues for long-term care providers. Industry seeking federal assistance; AHCA/NCAL urges HHS action for advanced payments and better communication. Cyberattack leading to healthcare system shutdowns, financial concerns.

Millions of Americans Will Soon Lose Internet Access. That’s a Disaster for Rural Health.

Mar 6, 2024Flipboard

Federal Affordable Connectivity Program, helping 20m American households afford internet, set to run out of funds, impacting telehealth access particularly in rural areas. Rural Americans suffer internet access and local doctor shortages, increasing telehealth importance for chronic health conditions management. Telehealth grown during Covid, cuts could intensify healthcare disparities. Better internet access key to telehealth equity.

AHA Urges Congress to Provide Support to Help Minimize Further Fallout from Change Healthcare Attack | AHA

Mar 6, 2024American Hospital Association

AHA requests Congress support against Change Healthcare cyberattack fallout, impacting hospitals and patient care, seeks urgent aid and federal action for healthcare provider stability.

Providers losing $100M daily over Change Healthcare hack: Report

Mar 6, 2024Becker's Hospital Review

Health systems lose $100M daily from Change Healthcare hack, leading to urgent calls for HHS action and emergency funding.

Health Equity Investments Likely To Rise In 2024, New Report Reveals

Mar 4, 2024Forbes

Deloitte survey suggests health equity investments will rise in 2024 due to increasing focus on reducing health disparities. Predicted challenges include resource limitations, competing priorities, and labor force problems. Regulatory pressures and policies may promote health equity focus. Potential risks from AI not incorporating health equity. Patient and community engagement vital in health equity strategies.

Hospitals Made Mistakes During The Pandemic. It’s Still Urgent Today

Mar 1, 2024Forbes

Covid-19 pandemic revealed hospitals' error-driven patient harm despite heroic efforts. Rise in preventable hospital-acquired infections proved hospitals' failure in handling public health crises and infection prevention. Consequently, increased federal interest in addressing patient safety rose, with new CMS standards and White House calls for better accountability, policy oversight, and technology utilization. Post-pandically, hospitals have begun addressing these issues, with decreasing infection rates and implementing AI innovation. Cloud migration challenges and solutions identified by Nutanix include refactoring, AI integration, vendor lock-in, security, skill shortages, and lack of support. Companies can move applications to the cloud without re-writing them, utilize AI to modernize, avoid vendor lock-in by using dual vendor strategy, choose their data location for maximum security, operate with a singular team, and utilize Nutanix's good support for their Cloud Platform.

A new mom died after giving birth at a Boston hospital. Was corporate greed to blame?

Feb 29, 2024CBS News

Sungida Rashid died at a hospital owned by private equity-backed company Steward Health Care due to lack of immediate care. Her death has sparked public criticism against private equity ownership of hospitals. Steward owns 33 US hospitals and is accused of prioritizing profits over patient needs. Rashid's death results from unavailability of a life-saving device as unpaid bills led to its repossession. Massachusetts officials investigate her preventable death and Steward's potential hospital closures amid financial struggles. CEO Ralph de la Torre purchased a $40 million yacht while company faces supply shortages.

Justice Department begins antitrust investigation into UnitedHealth

Feb 29, 2024Beckers Payer

Justice Department initiates antitrust investigation into UnitedHealth Group; scrutinizes relationships between UnitedHealthcare insurance unit and Optum health-services arm, potential favouritism in contract pricing, Medicare billing issues, and impacts of physician group acquisitions on rivals, consumers. This comes as part of wider governmental investigations into major companies under Biden's administration. UnitedHealth previously faced Justice Department challenges over mergers, acquisitions.

I went for a walk with Gary Marcus, AI’s loudest critic

Feb 28, 2024Technology Review

Gary Marcus, an AI critic, discusses his concerns over AI's current state, including exploitation by tech companies, misuse of copyrighted materials, and the absence of common sense in AI systems. He believes AI policy and action are urgently needed to avoid making the same mistakes as with social media companies. Marcus has written a book, Taming Silicon Valley, about AI regulation and public involvement for responsible AI.

Epic's Antitrust Paradox: Who Should Control The Levers Of Healthcare Innovation?

Feb 27, 2024Forbes

Despite Epic's 36% market share in U.S. hospitals not satisfying monopoly definitions, concerns rise about its dominant position and stifling healthcare innovation impact. Epic attracts top tech talent, offering long-term, game-changing research and development investments, ensuring consumer trust, predictability, and security. Critics argue its significant control over health system and academic medical center markets hinders competition, potentially negatively affecting healthcare expenditure. Epic allegedly employs contracts restricting third-party developers and employees to maintain its intellectual property. Seven areas of conduct are noted for scrutiny, including excessive non-compete clauses, unsustainable fee structures, and bundling practices.

Privacy Beats Ransomware as Top Insurance Concern

Feb 26, 2024Dark Reading

Firms scramble to meet SEC's cybersecurity regulations as mishandling PII may lead to catastrophic losses. Privacy claims take years to process though they are as disastrous as a ransomware attack. Corporations also face pixel-tracking claims due to lack of proper website activity consent. Anderson highlights that insurance payouts for privacy claims are not large, as insurers accrue interest from escrow funds during claim negotiations. Enterprises need better data elimination to avoid regulatory violations. Despite compliance with state laws and having cyber insurance, companies are not fully protected from potential litigation and fines for non-compliance with privacy laws. Firms recommended to use cyber insurer assistance to remain compliant and ensure their policies are effective.

KC hospitals say AI has potential to cut costs, but regulation lacking

Feb 25, 2024KC Beacon

AI use growing in Kansas City hospitals aiding physicians in recording notes and managing hospital beds. Health industry members believe AI can reduce costs, staff exhaustion, and improve patient care. However, regulation is required to avoid harmful potential. One mother used ChatGPT to diagnose her son's condition, undiagnosed by 17 doctors. Concerns about AI biases exist, affecting its credibility. Hospitals argue AI benefits include reduced costs, improved patient care, and advanced research. Tools such as Abridge are used to record patient visits, creating accurate notes and reducing doctor's paperwork. AI-based Patient Progression Hub at Children's Mercy improved inter-hospital referrals and patient discharging. Most Americans surveyed, however, feel uncomfortable with AI healthcare. Industry organizations create own AI standards, waiting for governmental regulations. The Center for Practical Bioethics encourages devising hospital AI policies and expecting tech developers to answer bias-related questions. Governmental bodies are now considering AI regulations.

Breach Roundup: More Fallout From the LockBit Takedown

Feb 25, 2024BankInfoSecurity

LockBit ransomware group disrupted; 14k email accounts linked closed, 35 servers seized. Avast settles privacy investigation for $16.5M. Concerns over email server attacks in Ukraine, Georgia, and Poland from Russia-linked threat group. No cyberattack evidence in AT&T network outage. A vulnerability in Apple's Shortcuts app allows possible access to sensitive user data. Microsoft unveils improved logging capabilities for federal agencies. Android banking Trojan Anatsa circulating malicious apps in Europe. North Korean hackers target global defence sectors. Baking giant Grupo Bimbo suffers ransomware attack.

Who Pays for Healthcare AI? (Part I)

Feb 21, 2024Morgan Cheatham on Substack

Healthcare AI payment models require innovation for industry potential realisation. Current hospital IT budgets limit software company growth, with healthcare AI adoption being hindered as a result. Business model innovation could enable greater value capture. Several ways to increase addressable spending and the TAM for software and AI are presented, including re-architecting operational expenses. Healthcare AI business models are divided into usage-based and performance-based, with the industry gradually shifting to pay-for-performance.

Who Pays for Healthcare AI (Part II)

Feb 21, 2024Morgan Cheatham's Substack

Part II of Morgan Cheatham's article on Healthcare AI pricing models explores five usage-based options: Linear, Volumetric, Bundled Usage, Managed Services, and Device-Maintenance. Each model's strengths, weaknesses, and appropriate use instances are discussed, along with examples of companies employing each method. Critical decisions that AI companies must make are outlined when choosing a pricing model, including defining a unit of value and relating value delivered to the pricing model. The article also covers the funding of linear, usage-based pricing models, managing value assignment, and consumer cash pay. Transitioning between models and potential challenges faced are also discussed.

The Money’s in the Wrong Place. How to Fund Primary Care

Feb 19, 2024The Healthcare Blog

US healthcare system predominantly focuses on high-intensity specialties, ignoring primary care, despite its potential in managing chronic diseases. The system sees exorbitant spending, with large non-profit organizations amassing wealth in hedge funds. Despite these numerous monetary reserves, these organizations resort to bailouts in crises. This system doesn't prioritize community health, with many lacking access to primary care, prompting large retailers' entry into primary care provision. Author encourages reevaluation of funds' allocation, reallocating it towards areas which need it most.

Stay ahead of the headlines

Daily Health IT headlines

Trending now

AMA Asking For Stronger Safeguards on AI Mental Health Chatbots

Andrea Daugherty Appointed Chief Information and Digital Transformation Officer at ARMC

Craig Richardville Appointed Chief Digital and Information Officer at UF Health

Former AMA Exec Margaret Lozovatsky Named CDIO At Premier Health

Regulatory & Policy Updates

After Change Healthcare, more effort needed to avoid cyberattack chain reactions