Christopher Snowbeck of the Star Tribune in Minnesota is doing some great reporting on the Change Healthcare UnitedHealth Group cyberattack.
Yesterday, he did a write-up on a Minneapolis therapy clinic suing Change Healthcare. He reports, in part:
Twin Cities Counseling says it hasn’t been able to submit payment claims for more than 100 appointments — resulting in thousands of dollars in missing reimbursements — since UnitedHealth Group took down the claims processing system at its Change Healthcare division to contain the IT threat.
Because of the billing mess, Twin Cities Counseling couldn’t cover its payroll in March, the lawsuit says. Additionally, recently hired therapy providers at the clinic haven’t been able to transition their patients to the practice.
He also reports:
Mental health providers have been among those most vocal in Minnesota talking about disruptions to their businesses because several clinics used an electronic health record called TherapyNotes that relied heavily on the data clearinghouse at Change Healthcare.
[…]
TherapyNotes is in the process of switching to a new clearinghouse, the lawsuit says. That means the clinic will need to spend time learning and implementing the new system and re-enrolling with payers while not receiving payment.
Read more at the StarTribune.com. It’s easy to get too absorbed in Change Healthcare’s statements about their recovery. We must never lose sight of the patients affected and providers affected. Snowbeck’s reporting is vitally important.
Today, Snowbeck reports that the attack could cost UnitedHealth Group up to $1.6B this year. UHG reportedly spent about $872 million during the first quarter responding to the Change Healthcare cyberattack and anticipates the costs may come to $1.6 billion for the year. Snowbeck reports, in part:
UnitedHealth Group says it has now provided more than $6 billion in advance funding and interest-free loans to health care providers that have struggled to bill for their services due to the system outage. Health care providers are among those who have filed about two dozen lawsuits against UnitedHealth Group over effects from the cyberattack.
During the first quarter, UnitedHealth Group incurred about $593 million in direct-response costs, including spending to start restoring the Change Healthcare system as well as temporary suspension of some care management rules, such as prior authorizations, to provide financial relief for health care providers.
The company also posted about $279 million in expenses from business disruptions, meaning lost revenue plus the expense of maintaining operations at Change Healthcare so they eventually can be re-launched, said John Rex, the company’s chief financial officer.
It is not clear whether their report includes $22 million that they allegedly paid to AlphV for a decryptor.
Read more at StarTribune.com.