Financial fallout continues from Change cyberattack
Eighty percent of practices have lost revenue due to unpaid claims, say respondents to an AMA survey.
Photo: Issarawat Tattong/Getty Images
Over three-quarters of physician practices have experienced severe disruptions since the February 21 Change Healthcare cyberattack, according to an American Medical Association survey of state medical associations and national medical specialty societies.
Several functionalities have been suspended, resulting in a substantial use of workarounds, respondents said.
Key findings show 36% have experienced suspension in claim payments, 32% have been unable to submit claims and 39% have not been able to obtain electronic remittance advice.
In some cases, practices have not been able to send paper claims to insurance companies that require electronic billing.
WHY THIS MATTERS
Because of the claims issues, 80% of practices have lost revenue from unpaid claims and 85% have committed additional staff and time to complete revenue cycle tasks.
One provider said the effects of the cyberattack, "may bankrupt our practice of 50 years in this rural community."
Others also spoke of possible bankruptcy, being out of cash and the fear of being acquired by a hospital system because of financial distress. Over half said they've had to use personal funds to cover practice expenses.
"We are barely able to pay employees and can't pay our vendors," one said.
Forty-eight percent of respondents have engaged alternative clearinghouses to Change.
Some are taking advantage of financial assistance available from the Centers for Medicare and Medicaid Services and UnitedHealth Group, Change's parent company.
Twelve percent of respondents said they have received assistance from CMS, 0.7% have received assistance from state Medicaid plans, 4.5% have gotten assistance other health plans and 25% have taken advantage of financial assistance offered by UnitedHealth Group and Optum.
The survey was open from March 26 to April 3, with an estimated 1,400 responding.
THE LARGER TREND
In its latest update, UHG said it has advanced nearly $4.7 billion to providers in need and "will continue to financially support providers through full system recovery."
UnitedHealth Group said it continues to make progress in mitigating the impact to consumers and care providers.
Change and UnitedHealth Group are facing more than two dozen lawsuits from the attack. Most are related to the potential impact on personal information.
About half of those are lawsuits by individuals who allege they are at risk for identity theft and fraud due to their data being compromised in the attack.
Change has made a motion to consolidate these cases, in a request before the United States Judicial Panel on Multidistrict Litigation.
Email the writer: SMorse@himss.org
