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March 12, 2024
Health care providers losing up to $1B a day from cyberattack
Summary
The cyberattack on Change Healthcare has inflicted severe disruptions on the U.S. healthcare system, with industry officials and analysts estimating the cost to health providers at up to $1 billion daily. This significant financial strain is expected to impact first-quarter earnings negatively, highlighting the critical role of Change's third-party payment systems, which are utilized by approximately half of the U.S. healthcare sector. Despite efforts to restore these systems, the process is complex, involving extensive manual workarounds and additional administrative tasks for hospitals, pharmacies, doctors, and medical equipment vendors. The situation has led to a considerable loss in revenue since February 21, when the cyberattack initially took systems offline. With federal officials stepping in to provide emergency funds and calls for UnitedHealth to assist, the sector faces a challenging period of recovery, complicated further by potential delays in payments and the likelihood of unrecovered funds due to administrative errors.
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