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More than three months after a cyberattack on UnitedHealth Group Inc’s (NYSE:UNH) technology unit, community health centers serving 30 million low-income and uninsured patients are still grappling with operational disruptions and delayed reimbursements.
The cyberattack on Change Healthcare, a subsidiary of UnitedHealth, temporarily shut down services that process about 50% of all U.S. medical claims.
This affected around 900,000 doctors, 33,000 pharmacies, 5,500 hospitals, and 600 labs. Although the claims system and other services are gradually being restored, the aftermath continues to burden healthcare providers.
Reuters reports that several community health centers are still reconciling unpaid medical claims and tracking missing payments.
Some centers have lost customers due to disruptions caused by the cyber attack.
Hannah Neprash, Assistant Professor of Division of Health Policy & Management at the University of Minnesota Twin Cities, noted that the financial impact is particularly severe for providers with already slim profit margins, Reuters notes.
In May, UnitedHealth CEO Andrew Witty testified before a U.S. Senate committee, acknowledging the “incredible disruption” caused by the cyberattack.
He stated that the company had distributed $6.5 billion in loans to providers, with 34% going to safety net hospitals and community health centers.
Quoting J.C. Flowers, Executive Vice President of Revenue Cycle and Population Health at Nevada Health Centers, Reuters highlighted the strain on staff, with employees logging over 100 hours of overtime weekly to correct patient eligibility and denied claims.
Despite increased labor needs, Nevada Health Centers may need to cut jobs due to delayed cash flow and overdue payments.
Relationships with patients have also suffered. A. Scott McNeal, CEO of Delaware Valley Community Health, shared that longer wait times led some patients to hang up without scheduling appointments.
Ronan Gannon, CEO of LCH Health and Community Services, reported that some patients left for other providers, worsening their revenue challenges as a higher proportion of uninsured patients remained.
Price Action: At the last check on Wednesday, UNH shares were down 0.74% at $501.78.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Posted In: UNH
