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March 27, 2024
Nursing Home Declares Bankruptcy, Blames Recent Cyberattacks
BankInfoSecurity
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Contributed by: Drex DeFord
Summary
A Midwest nursing home operator, SC Healthcare Holdings LLC, operating under Petersen Health Care, has declared bankruptcy due to financial troubles stemming from a ransomware attack in October and complications from a cyberattack on Change Healthcare that disrupted payments. The situation has been exacerbated by the COVID-19 pandemic, staffing issues, and inflation. In response, Senator Mark Warner introduced legislation to provide payment relief to healthcare providers hit by cyber incidents, provided they meet certain cybersecurity standards. The case highlights the broader vulnerability of the healthcare industry to cyberattacks, with Change Healthcare's attack significantly impacting financial operations and the credit outlook for smaller providers reliant on its billing services.
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