Just a few weeks after a high-profile cyberattack on a children’s hospital in Chicago, the broader healthcare industry was left reeling by an even bigger problem. On February 21, hackers shut down operations at the nation’s largest billing and payment clearinghouse.
Operated by multinational insurance giant UnitedHealth Group, Change Healthcare is a digital network that handles hundreds of millions of dollars in insurance payments every day. It also manages one of every three patient records in the U.S., totaling nearly 15 billion transactions a year.
But with operations effectively halted after a ransomware attack froze billing and payment transactions, money is no longer flowing between hospitals, doctors, and medical providers. Desperate practitioners have had to borrow hundreds of thousands of dollars to cover employee payrolls and everyday expenses—and many worry that the problems could continue for weeks or months.
On March 7, UnitedHealth revealed details of the cyberattack; it also announced a loan program that would try to fill the gap with insurance payments to medical facilities and providers. But many organizations said that wasn’t adequate to cover immediate costs—and called attention to the fact that UnitedHealth still didn’t know when normal operations would resume.
Bigger fears have also started to surface: Was patient data compromised by the cyberattack? Was a $22 million Bitcoin transaction linked to the suspected hackers a ransom paid from UnitedHealth to try and recover that data? Could the targeting of Change Healthcare represent an escalation of last month’s attack on Lurie Children’s Hospital, which took a month to restore normal operation? And is this the “new normal” for the lucrative and essential healthcare industry?
Worries for the future.
The powerful American Hospital Association believes that’s the case. Last week, they called the cyberattack “the most significant and consequential incident of its kind against the U.S. healthcare system in history.” They also speculated that its member institutions may have to stop providing services to patients: “Nothing in [UnitedHealth’s] announcement materially changes the chronic cash flow implications and uncertainty that our nation’s hospitals and physicians are experiencing as a result.” It could be “weeks—if not months—before our hospitals and other healthcare providers will be made whole.”
So far, providers and patients are the ones bearing the brunt of the disruption. Around the country, people have had to pay out-of-pocket to fill critical prescriptions. Independent physician practices have had to postpone employee paychecks. And the federal government has asked providers to switch payment portals, a process that many say could take up to 90 days.
Meanwhile, cybersecurity experts working in the healthcare industry are looking for answers—not so much to expose UnitedHealth’s shortcomings but to instead understand how the breach happened so that other organizations can strengthen their own defenses.
Why are hackers targeting healthcare organizations?
Because such institutions continue to be viewed as easy and convenient targets. Medical groups manage thousands—even millions—of sensitive patient records and are considered more willing to pay ransom payments to try and maintain essential services. And if UnitedHealth really did pay $22 million to try and retrieve stolen data, that could actually incentivize hackers to attempt further attacks—not back off. A former federal cybersecurity official put it best in an interview with NPR: ”When there’s gold in the hills, there’s a gold rush.”
Looking further into the future, the escalating attacks enhance doubts about whether the private companies that make up the U.S. health system and the government that regulates them can withstand so many ongoing cyberthreats. The FBI reported nearly 250 ransomware attacks against healthcare and public health organizations in 2023—and many believe the number is significantly higher.
How did this cyberattack happen?
As with most high-profile incidents, details have not been released—and rumors are swirling. However, experts warn that a devastating breach can occur via something as simple as a click on an illicit link in a phishing email or an inadvertent response to a spam phone call. Both of these threat vectors proliferate, even in the face of tighter regulations and stronger cybersecurity defenses.
The healthcare industry is particularly at risk because of the thousands of connected medical devices in use across the country. Devices with outdated software could provide easy access for hackers looking to break into a hospital network. The FDA recently increased its efforts to measure the digital defenses of medical devices and issue recommendations to fix them. But vulnerable machines often stick around because of how expensive they are to take offline or replace.
What can healthcare organizations do to protect themselves?
Just as they did last month in light of the attack on Lurie Children’s Hospital, IT providers like CMIT Solutions are urging businesses in the healthcare industry to reconsider their cybersecurity measures and strengthen their defenses. This includes solutions like proactive system monitoring, advanced threat detection technology, reliable data backup, enhanced employee training, and much more.
Below, we review the details of these critical tools and how they can protect businesses in the healthcare sector and other industries:
The recent cyberattacks on Lurie Children’s Hospital and Change Healthcare serve as major red flags highlighting the dangers faced by healthcare organizations. Many cybersecurity experts think the industry is at a critical juncture when patients and consumers will demand stronger privacy protections and no longer put up with ongoing digital risks.
At CMIT Solutions, we work hard to stay ahead of industry shifts like that, working with clients across North America to secure data, protect networks, and empower employees to serve as the first line of cyber defenses. As a large North American system with more than 25 years of experience and 250-plus offices across the United States and Canada, we deliver threat protection and trusted advice to every client.
Whether you’re a large healthcare system looking for operational stability or a small office that needs to upgrade its systems to better handle financial procedures, CMIT Solutions can help. Contact us today to prevent ransomware and ensure a safer future for your business.
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