Most Popular

UnitedHealth Cyberattack Fallout: Emergency Funds Urged By American Medical Association UnitedHealth Cyberattack Fallout: Emergency Funds Urged By American Medical Association

The recent cyberattack on UnitedHealthGroup Inc’s Change Healthcare unit has sent shockwaves through the health sector. The American Medical Association (AMA) has stepped up, urging the Biden Administration to release emergency funds to assist physicians grappling with the fallout.

Chaos Unleashed by Hackers

Hackers linked to the ‘Blackcat’ ransomware gang are responsible for the ongoing outage at UnitedHealth. This disruptive attack has caused significant delays in prescription deliveries for the past six days, raising concerns about patient care and financial stability for healthcare providers.

AMA’s Plea for Financial Aid

AMA Chief Executive James Madara penned a compelling letter to U.S. Health and Human Services Secretary Xavier Becerra, emphasizing the critical need for emergency funds to shore up physicians amidst the chaos. The AMA President, Jesse Ehrenfeld, echoed this urgency, highlighting the vulnerability of practices reliant on timely claims payments for survival.

Collaborative Efforts

HHS and AMA are working hand in hand to find solutions to the cash flow problems haunting physicians in the aftermath of the cyberattack. Senator Charles Schumer has also joined the chorus, urging CMS to expedite payments to affected hospitals and healthcare providers facing financial distress.

Industry Criticisms

The American Hospital Association (AHA) has criticized UnitedHealth’s efforts to restore financial systems post-attack. In a scathing letter, AHA’s Richard Pollack slammed the company’s assistance program as inadequate and the terms as shockingly burdensome, indicating a rocky road to recovery for the healthcare giant.

Recovery Efforts and Market Impact

In response to the cyber incident, Change Healthcare has rolled out a new version of its ePrescribing service to all customers. Additionally, UnitedHealth has launched a temporary funding program to support providers struggling to receive payments due to the cyberattack. However, the fallout is palpable as UNH shares are down 1.90% at $472.71.

See also  Unveiling Cameco's Unusual Options ActivityUnveiling Cameco's Unusual Options Activity

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: B_A from Pixabay