‘Growing Concern’: MN Hospitals Take Financial Hit After Cyberattack

MINNETONKA, MN — Minnesota hospitals and healthcare systems have seen massive reductions in cash flow due to ongoing cyberattacks on a UnitedHealth Group subsidiary.

The recent attacks on Change Healthcare, owned by Minnetonka-based UnitedHealth Group, threaten providers' ability to buy basic medical supplies and pay salaries for nurses, doctors, security guards, and more.

"There is a growing concern regarding the prolonged impact on patient care and operational stability," the Minnesota Hospital Association told the Washington Post. "This places a significant burden on the financial sustainability of the health care system."

UnitedHealth Group’s "Temporary Funding Assistance Program" — established March 1 — is not expected to come close to meeting the needs of clients.

"We're continuing to fill prescriptions, but in certain cases we are not able to process insurance claims, which our business continuity plan is addressing to ensure patients continue to have access to their medications," UnitedHealth Group told the Star Tribune.

The cyberattacks on Change Healthcare began on Feb. 21 but have regularly continued since then.

Change Healthcare processes approximately 15 billion healthcare transactions annually and touches one in every three patient records, including for chains CVS Health and Walgreens. The attack has led industry leaders to call on the Biden administration and Congress to do more to protect critical healthcare infrastructure.

In a letter to Xavier Becerra, secretary of U.S. Department of Health and Human Services, the American Hospital Association said the "unprecedented attack" on Change Healthcare has already caused "significant consequences on hospitals and the communities they serve."

"Although the full scope of the impact is still unclear, Change Healthcare’s vast nationwide reach suggests that it could be massive," the association said.