With Cyberattack Fix Weeks Away, Health Providers Slam United

Hospitals, doctors and clinics expressed frustration that they will have to wait even longer for reimbursements after hackers paralyzed the largest U.S. billing clearinghouse.More than two weeks after a cyberattack, financially strapped doctors, hospitals and medical providers on Friday sharply criticized UnitedHealth Group’s latest estimate that it would take weeks longer to fully restore a digital network that funnels hundreds of millions of dollars in insurance payments every day.UnitedHealth said that it would be at least two weeks more to test and establish a steady flow of payments for bills that have mounted since hackers effectively shut down Change Healthcare, the nation’s largest billing and payment clearinghouse, on Feb. 21.But desperate providers that have been borrowing money to cover expenses and employee payrolls expressed skepticism at that estimate, worrying that it could be months before the logjam of claims and payments cleared up.“We have nearly a three-week gap in cash flow,” said Brad Larsen, a psychologist and founder of Portland Mental Health & Wellness in Oregon, adding that the group had received only about 10 percent of its expected insurance payments. He said the practice had to borrow $300,000 to meet its first of two payrolls for the month. “It’s not good.”In an apparent move to mollify some providers who had expressed disappointment at United’s earlier remedy of a loan program that offered stopgap payments of as little as $20 a week, the parent company agreed to issue advances. United announced that its insurer, the largest in the United States, would begin advancing payments to hospitals and doctors based on amounts billed before the cyberattack.And given that three of every patient records in the country goes through Change, the cyberattack affected not only United’s clients but also those of many other insurers. That led UnitedHealth’s executive to recommend that they also offer advances. “To me, that is the quickest way to get money in the hands of providers,” Dirk McMahon, United’s president and chief operating officer, said in an interview. .We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.

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Cyberattack Wreaks Havoc on Health Care Billing

The hacking shut down the nation’s biggest health care payment system, causing financial chaos that affected a broad spectrum ranging from large hospitals to single-doctor practices.An urgent care chain in Ohio may be forced to stop paying rent and other bills to cover salaries. In Florida, a cancer center is racing to find money for chemotherapy drugs to avoid delaying critical treatments for its patients. And in Pennsylvania, a primary care doctor is slashing expenses and pooling all of her cash — including her personal bank stash — in the hopes of staying afloat for the next two months.These are just a few examples of the severe cash squeeze facing medical care providers — from large hospital networks to the smallest of clinics — in the aftermath of a cyberattack two weeks ago that paralyzed the largest U.S. billing and payment system in the country. The attack forced the shutdown of parts of the electronic system operated by Change Healthcare, a sizable unit of UnitedHealth Group, leaving hundreds, if not thousands, of providers without the ability to obtain insurance approval for services ranging from a drug prescription to a mastectomy — or to be paid for those services.In recent days, the chaotic nature of this sprawling breakdown in daily, often invisible transactions led top lawmakers, powerful hospital industry executives and patient groups to pressure the U.S. government for relief. On Tuesday, the Health and Human Services Department announced that it would take steps to try to alleviate the financial pressures on some of those affected: Hospitals and doctors who receive Medicare reimbursements would mainly benefit from the new measures.U.S. health officials said they would allow providers to apply to Medicare for accelerated payments, similar to the advanced funding made available during the pandemic, to tide them over. They also urged health insurers to waive or relax the much-criticized rules imposing prior authorization that have become impediments to receiving care. And they recommended that insurers offering private Medicare plans also supply advanced funding.H.H.S. said it was trying to coordinate efforts to avoid disruptions, but it remained unclear whether these initial government efforts would bridge the gaps left by the still-offline mega-operations of Change Healthcare, which acts as a digital clearinghouse linking doctors, hospitals and pharmacies to insurers. It handles as many as one of every three patient records in the country.The hospital industry was critical of the response, describing the measures as inadequate.Beyond the news of the damage caused by another health care cyberattack, the shutdown of parts of Change Healthcare cast renewed attention on the consolidation of medical companies, doctors’ groups and other entities under UnitedHealth Group. The acquisition of Change by United in a $13 billion deal in 2022 was initially challenged by federal prosecutors but went through after the government lost its case.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe.

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