Cyberattack Crisis: Federal Plan to Rescue Struggling Hospitals Revealed

Washington, D.C. – Federal officials announced a comprehensive plan on Tuesday to assist hospitals, doctors, and other healthcare providers impacted by a cyberattack that has disrupted the nation’s health payment network. Following warnings from health industry leaders about the possibility of some organizations facing closure due to the attack, the Department of Health and Human Services (HHS) stated that it is taking direct action to address the concerns raised.

The Centers for Medicare and Medicaid Services (CMS) will be urging health insurers to ease billing requirements that often hinder the process, such as the need for prior authorization from physicians before providing specific care to patients. Additionally, CMS is working with private health plans to offer advance funding to the most affected organizations as a result of the cyberattack.

The hack of Change Healthcare, a part of UnitedHealth Group that occurred on February 21, has severely impacted health care payments for thousands of hospitals, physicians, and providers across the United States. Government officials have labeled it as one of the most serious cyberattacks targeting the U.S. health-care system. Emergency meetings have been held by federal officials, including HHS Secretary Xavier Becerra and Deputy Secretary Andrea Palm, along with administration leaders and UnitedHealth, to address the escalating health-care payment crisis.

Numerous hospitals, medical practices, and other healthcare stakeholders are experiencing significant cash flow issues following nearly two weeks of limited ability to submit medical claims and receive payments from insurers. Patients have reported delays in care and difficulties using discount cards or patient-assistance programs tied to the electronic clearinghouse operated by Change Healthcare.

CMS has instructed providers to enroll in a new electronic clearinghouse to process claims, expediting the onboarding and billing process through Medicare administrative contractors. While UnitedHealth has offered emergency funding to impacted organizations through its Optum health services arm, some physicians argue that the assistance is insufficient to cover their needs.

The cyberattack has emphasized the growing digital risks within the health industry, highlighting the imperative for strengthening cybersecurity resiliency. The incident serves as a reminder of the interconnectedness of the domestic health care ecosystem. As investigations continue, Change Healthcare has shut down most of its network in an effort to recover from the attack, while UnitedHealth remains focused on resolving the situation.