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In the News

Change Healthcare Rival Onboards Hundreds of Thousands of Customers During Hack Crisis - WSJ

March 26, 2024

In response to a cyberattack on Change Healthcare that disrupted its claim submission services, Availity, a competitor in the health tech sector, launched a simplified, complimentary service enabling healthcare providers to continue submitting claims. This strategic move comes after the attack left clinicians and insurers searching for alternatives, resulting in Availity processing over $5 billion in claims originally meant for Change Healthcare. To accommodate the surge in demand, Availity is expanding its team by hiring approximately 20 new staff members, demonstrating its commitment to support the healthcare industry during this crisis.

Change Healthcare Rival Onboards Hundreds of Thousands of Customers During Hack Crisis - WSJ The Wall Street Journal

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Senate set to grill UnitedHealth over Change Healthcare crisis - The Washington Post

March 26, 2024

The U.S. Senate is preparing to question UnitedHealth Group CEO Andrew Witty about a cyberattack on its subsidiary Change Healthcare, a major medical claims processor. The Senate Finance Committee seeks to understand the company's vulnerability to such attacks, response actions, and steps toward future protection. Amidst rising concerns over the industry's cybersecurity weaknesses, this hearing marks a growing scrutiny on health industry executives, especially given the significant disruption and data theft resulting from this specific cyberattack. UnitedHealth's involvement in the crisis and its aftermath, including the pressure from government officials for greater emergency funding and transparency, highlights the broader challenges of data security and consolidation risks within the healthcare sector.

Senate set to grill UnitedHealth over Change Healthcare crisis - The Washington Post Washington Post

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Change Healthcare to start processing $14B claims backlog as it restores clearinghouse platforms

March 26, 2024

UnitedHealth Group announced plans to tackle the $14 billion claims backlog caused by a cyberattack on its subsidiary, Change Healthcare. The largest clearinghouse, Relay Exchange, is expected to resume operations by the weekend's end, signifying a pivotal step in the recovery process initiated after the February 21 cyberattack. This incident significantly disrupted reimbursements and pharmacy operations across various healthcare providers. UnitedHealth has already advanced $2.5 billion to affected parties. A phased reinstatement of services is underway, with the recent restoration of Change Healthcare's pharmacy network services and electronic payments platform. Additionally, the cyberattack prompted Senator Mark Warner to propose legislation aimed at enhancing cybersecurity in the healthcare sector. Amid these developments, several lawsuits have emerged from both patients and providers seeking redress for the financial and operational upheavals experienced due to the attack.

Change Healthcare to start processing $14B claims backlog as it restores clearinghouse platforms Fierce Healthcare

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Utah Enacts First AI Law – A Potential Blueprint for Other States, Significant Impact on Health Care

March 25, 2024

Utah has taken a pioneering step by enacting the first state law focused on Artificial Intelligence, setting a potential precedent for future legislation across the United States. This groundbreaking move is poised to significantly influence the health care sector by establishing a legal framework for the use of AI technologies. The legislation aims to balance innovation with ethical considerations, ensuring that the deployment of AI in health care is both beneficial and responsible. This development is an important milestone in the integration of AI into healthcare practices and could serve as a model for other states considering similar legislative measures.

Utah Enacts First AI Law – A Potential Blueprint for Other States, Significant Impact on Health Care Manatt

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Insights by Kate Gamble
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