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Small physician groups particularly vulnerable after Change Healthcare cyberattack; some consider bankruptcy

Posted on April 13, 2024 by Dissent

Marty Stempniak reports that physician practices are struggling from the financial impact of the Change Healthcare cyberattack in February. Smaller physician practices may be particularly hard-hit, with some considering closing, according to new data from the American Medical Association (AMA).

An informal survey conducted by the AMA recently found that 80% of physician groups reported losing revenue from unpaid claims and 85% had committed additional staff time and resources to complete revenue cycle tasks. Stempniak reports:

AMA noted particular concern among small practices with 10 or fewer physicians (who represented 78% of respondents). One reported concern that the shutdown “may bankrupt our practice of 50 years in this rural community.” Another said they are selling the business to a hospital system “because I just can’t bear the financial responsibility.”

“The disruption caused by this cyberattack is causing tremendous financial strain,” AMA President Jesse M. Ehrenfeld, MD, said in a statement issued April 10. “These survey data show, in stark terms, that practices will close because of this incident, and patients will lose access to their physicians.”

UnitedHealth Group’s most recent status update on recovery was posted on April 10. On April 3, addressing the financial impact, they wrote:

We’ve advanced nearly $4.7B to providers in need and will continue to provide financial support to providers through full system recovery. Significant enhancements are available to providers who receive payments from payers processed by Change Healthcare; UnitedHealthcare medical, dental and vision providers; and providers who have exhausted all available connection options — or are in the process of implementing workaround solutions — and work with other payers who have opted not to advance funds while the Change systems are down.

Nearly 25% of AMA’s survey respondents reported that they had received some assistance from UHG, but 55% of respondents said they had used their own personal finances to try to keep their practices afloat. The results of the survey are embedded below this post.

The survey also touched on the significant impact on patient care. If AlphV or the affiliate(s) responsible for locking Change Healthcare are ever caught and prosecuted,  they need to be held accountable for all those whose care was delayed at the cost of their health.

change-healthcare-survey-results
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