Optum’s Change Healthcare is grappling with the aftermath of a major cyberattack that has significantly disrupted its operations, affecting payment processing for healthcare providers. The attack, attributed to a suspected state-sponsored group, was first reported on February 21, and since then, there have been 48 updates from the company regarding the breach.
While these updates reassure that “Optum, UnitedHealthcare, and UnitedHealth Group systems have not been affected,” they do little to alleviate the concerns of healthcare executives like John Couris, CEO of Tampa General Hospital. This nonprofit facility relies on Change Healthcare for processing claims and payments.
Couris expressed his concerns during a recent conference in Los Angeles, where he approached Optum CEO Amar Desai for more information about the situation. “I said, ‘Listen, I’m truly sympathetic to your plight, because you didn’t ask for this. You haven’t done anything wrong…’ I then asked, ‘So when do you think we’re going to be back up?’ His response was, ‘We’ll have an update in two days.’ So, I don’t think he knows. Being a CEO myself, I understand he won’t share information irresponsibly; he genuinely wants to grasp the situation,” Couris noted.
The cyberattack has not only impacted Change Healthcare’s ability to process claims but has also affected military pharmacy operations globally as well as some retail pharmacies across the United States. Couris commented, “I cannot speak on behalf of United, but it appears that Change Healthcare has been compromised. These attackers seem to have captured, encrypted, and are now holding for ransom the brain of their system.”
Couris speculated that Change Healthcare likely will not pay the ransom, as there are no assurances that the attackers would relinquish control of the system. “There’s also no guarantee that they won’t introduce malicious code that could create further issues down the road,” he explained, adding, “I don’t think they will pay anything. They’re going to have to rebuild their systems.”
This lengthy recovery process may lead to financial strain for Tampa General Hospital, which operates 1,040 beds. Couris shared, “We relied on Change Healthcare to be a claims exchange. All our claims were directed to them for adjudication before sending them to the payers. Currently, we can’t do that, which is likely to impact our cash flow. We are closely monitoring the situation.” He expressed concerns about having to stretch daily cash reserves to meet operational needs.
Given the uncertainty surrounding the recovery timeline, Couris has contemplated switching providers, but noted, “Transitioning away from a claims clearinghouse would take several months and would be extremely disruptive. We have to stick with Optum and allow them to resolve the situation. It could take two, three, or even four weeks before claims are paid again. This has a real impact on our cash available on a day-to-day basis, and changing to another provider isn’t practical.”
Even if they were to find an alternative, Couris highlighted that many peers in the healthcare industry also utilize Change Healthcare, complicating the search for replacements. He remarked, “…Even the organizations we consult use Change Healthcare indirectly in some capacity.” However, he acknowledged that some recently acquired hospitals do not use Change Healthcare but couldn’t specify their providers.
Couris is convinced that this breach is not a typical cyber incident. “This was not a small hack,” he stated emphatically.
Photo: anyaberkut, Getty Images
