Who:
UnitedHealth Group, a major U.S. healthcare company.
What:
UnitedHealth Group disclosed that the cyberattack on its Change Healthcare unit will cost between $2.3 billion and $2.45 billion in 2024.
The cyberattack occurred in February, affecting Change Healthcare's billing and payment system, which caused disruptions for physicians and medical care providers nationwide.
The attack led to a significant increase in projected costs, more than doubling the earlier estimate of $1.35 billion to $1.6 billion.
Impact:
Financial Loss: The cyberattack has had a substantial financial impact, contributing to a decline in net income to $4.2 billion in Q2 2024, down from $5.4 billion in the same period last year.
Revenue Growth: Despite the attack, UnitedHealth Group’s revenues increased to $98.9 billion, up nearly $6 billion year-over-year.
Operational Disruptions: The attack paralyzed parts of Change Healthcare’s electronic system, causing delays in insurance approvals and financial strain on healthcare providers.
Support for Providers: UnitedHealth provided over $9 billion in advance funding and interest-free loans to support affected healthcare providers.
Recovery Efforts: Most of the affected services have been restored, though the company continues to address the fallout from the attack.
Broader Industry Impact: The attack affected thousands of doctor practices, with 80% reporting lost revenue from unpaid claims, threatening the viability of many physician practices.
Overall, the cyberattack on Change Healthcare represents one of the most significant cyber incidents in the U.S. healthcare industry, with far-reaching financial and operational impacts.
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