AHA Confirms Financial Impact of Change Hack on US Hospitals

Phuong Kieu  - News Writer
Last updated: June 13, 2024
Human Written
AHA Confirms Financial Impact of Change Cyberattack on US Healthcare Organizations
Radar Rundown
  • Cyberattack on UnitedHealth Group’s Change Healthcare unit led to financial losses for many hospitals in the US.

  • AHA report reveals that 94% of hospitals faced financial issues and over half experienced major losses.

  • AHA sent a letter to Congress ahead of hearings, highlighting impacts on healthcare and UnitedHealth Group’s response, including $6.5 billion in payments and loans.

Many US hospitals were victims of the cyberattack on the Change Healthcare unit of UnitedHealth Group earlier in the year, which led to a financial crisis.

A report by the American Hospital Association (AHA) showed that about 94% of hospitals faced financial issues due to the hack. More than half experienced major financial losses because Change could not process claims.

The association sent a letter to the US Senate Finance and House Energy and Commerce committees on behalf of nearly 5,000 healthcare systems and hospitals.

They explained that “while this event had disparate impacts on providers, all communities felt the effects.”

This letter was sent on Monday, before Wednesday’s Congressional hearings on healthcare cybersecurity vulnerabilities. Following this development, UnitedHealth CEO Andrew Witty will testify about the various healthcare disruptions since the incident.

These hearings follow the US government’s security investigation into Change Healthcare, which oversees the largest payment management system in the country for healthcare organizations. According to Witty’s written testimony, on February 21, cybercriminals (AlphV, alias BlackCat) locked up its systems and demanded ransom. 

The CEO will also testify that UnitedHealth Group has made $6.5 billion available in accelerated payments and loans since the attack. According to AHA’s announcement, some providers have resorted to high-interest loans despite this effort. 

The American Hospital Association also informed Congress that insurers like UnitedHealth Group collected interest on unpaid claims.

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About the Author

Phuong Kieu

Phuong Kieu

News Writer

Phuong is a tech news writer who has formerly worked for several renowned publications. Due to her journalism background and love for technology, she helps her readers by covering technical news in simple and easy-to-understand words. Phunog spends most of her time reading or covering the latest tech news. In her free time, she uses social media and watch movies.

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