Largest U.S. Health Care Payment System Under Cyber-Siege
UnitedHealthcare acquired Change Healthcare in 2022 with marginal pushback from the Feds ....
by ML SHAW
A cyberattack of unprecedented scale struck the heart of the American health care payment system.
Change Healthcare, a digital clearinghouse integral to the nation's medical billing and insurance, was paralyzed by a group known as AlphV or BlackCat.
This digital assault has left a wake of financial turmoil, affecting entities from sprawling hospital networks to the solitary practices of dedicated physicians.
Providers are now in a dire cash crunch, unable to process insurance approvals or receive payments for services rendered. The attack has disrupted the flow of tens of millions of dollars, with some providers pooling personal funds to maintain operations.
The government's response, offering accelerated Medicare payments and urging insurers to relax prior authorization rules, has been met with criticism for its inadequacy.
The cyber siege has not only caused immediate financial distress but has also exposed the fragility and vulnerability of the interconnected webs of electronic health information.
The consolidation of such services under UnitedHealth Group, which acquired Change Healthcare in a $13 billion deal despite initial legal challenges, has come under renewed scrutiny.
As the crisis unfolds, the health care system grapples with the reality of its dependence on digital infrastructure, now clearly susceptible to the whims of cybercriminals.
The story is a stark reminder of the thin digital thread upon which modern medicine hangs, a thread that, when severed, can unravel the very fabric of health care delivery.
sources:
https://www.nytimes.com/2024/03/05/health/cyberattack-healthcare-cash.html
https://www.fiercehealthcare.com/payers/unitedhealth-closes-acquisition-change-healthcare
https://www.nytimes.com/2024/02/26/health/cyberattack-prescriptions-united-healthcare.html
--Fast--Facts-->
-> Change Healthcare is a significant unit of UnitedHealth Group, which operates as a digital clearinghouse for the U.S. health care payment system.
-> UnitedHealth Group consists of two distinct and complementary businesses: Optum and UnitedHealthcare, with a focus on building a modern, high-performing health system.
-> Change Healthcare handles as many as one of every three patient records in the country, acting as a crucial link between doctors, hospitals, pharmacies, and insurers.
-> The company processes approximately 15 billion transactions a year, which includes the submission of bills and receiving payments.
-> UnitedHealth Group acquired Change Healthcare in a $13 billion deal in 2022, which was initially challenged by federal prosecutors but ultimately went through.