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April 18, 2024
Change Healthcare’s ransomware attack costs reach nearly $1B
The Register
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Contributed by: Drex DeFord
Summary
UnitedHealth has reported significant financial impacts due to a ransomware attack on its subsidiary, Change Healthcare, in February 2024, with costs already reaching $872 million in the first quarter. The company has offered over $6 billion in support to affected care providers, with total Q1 impacts per share at $0.74, expected to rise between $1.15 and $1.35 by year-end. Remediation and business disruption costs are anticipated to exceed $1 billion, including a $22 million ransom payment to the attackers. The cyberattack has severely affected hospitals and pharmacies across the U.S., impacting cash flow and care provision, leading to a $1.221 billion net loss for Q1. Despite these challenges, UnitedHealth's share price saw a 7.5 percent increase in premarket trading after announcing these results. The total estimated cost of the cyberattack for 2024 is between $1.35 billion and $1.6 billion.
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