Cyber attack is costing Massachusetts hospitals $24,154,000 dollars per day.
The Massachusetts Health and Hospital Association (MHA) recently released a report detailing the financial impact of a cyber attack on Change Healthcare. According to the survey, which included responses from 12 hospitals and health systems, the average daily cost of the attack was estimated at a staggering $24,154,000.
The report sheds light on the serious financial consequences that a cyber attack can have on the healthcare industry. Change Healthcare, one of the largest providers of healthcare technology solutions in the United States, was the victim of a cyber attack in early August. The attack targeted their internal systems, causing widespread disruption and forcing many hospitals and health systems to shut down or divert patients.
The MHA survey asked hospitals and health systems to estimate the daily costs incurred as a result of the cyber attack. The responses showed a wide range of financial impact, with some facilities reporting costs of over $30 million per day. The average daily cost of $24,154,000 is a staggering figure, and it highlights the significant financial burden that hospitals and health systems face when dealing with a cyber attack.
The costs reported by the surveyed facilities were primarily related to lost revenue and increased expenses. With their systems down, hospitals and health systems were unable to see patients, perform procedures, and bill for services. This resulted in a significant loss of revenue for these facilities. Additionally, many facilities had to incur additional expenses to restore systems and implement cybersecurity measures in response to the attack.
The MHA report also highlights the indirect costs that hospitals and health systems faced. These included the cost of hiring external experts to assist with the recovery process, the cost of notifying patients and providing them with credit monitoring services, and the cost of potential legal fees and fines.
The impact of the cyber attack on Change Healthcare was felt not only in Massachusetts but across the country. Hospitals and health systems in other states also reported significant financial losses as a result of the attack. This further emphasizes the need for improved cybersecurity measures in the healthcare industry.
The MHA report comes as a wake-up call for hospitals and health systems to prioritize cybersecurity. As the healthcare industry becomes increasingly reliant on technology, it is crucial for facilities to have robust cybersecurity measures in place to protect sensitive patient information and prevent costly disruptions.
In response to the attack, Change Healthcare has taken steps to improve their security protocols and is working closely with affected hospitals and health systems to mitigate the financial impact. The MHA report serves as a reminder to other healthcare organizations to continuously assess and strengthen their cybersecurity measures to prevent future attacks.
In conclusion, the MHA report on the costs of the cyber attack on Change Healthcare serves as a warning to the healthcare industry. The staggering average daily cost of $24,154,000 highlights the severe financial impact that a cyber attack can have on hospitals and health systems. It is crucial for the industry to invest in robust cybersecurity measures to protect against such attacks and ensure the safety and well-being of patients.