Health Care Sector Feeling Impacts Of Cyber Attack

Some Massachusetts hospitals are dealing with “serious disruption” following the cyberattack against Change Healthcare last month that has upended health care operations and provider payments across the country.

While no facility in the commonwealth experienced a direct cyberattack, the Massachusetts Health and Hospital Association said Monday it is responding to the ripple effects of the breach to Change Healthcare, which provides services to hospitals and health plans like eligibility verification, claims processing and prior authorization submissions.

“MHA has begun talks with state officials and commercial payers about bridge payments where needed as well as potential flexibilities relating to claims deadlines and temporarily waiving prior authorizations, among other mitigations,” MHA said in its weekly newsletter. “Blue Cross and Blue Shield of Massachusetts and Point32Health have reached out to providers, offering alternatives to Change Healthcare and workarounds, while other Massachusetts insurers have developed similar processes.”

The American Hospital Association is seeking support from the federal government, asking the executive branch for help with Medicare payments and to ensure that UnitedHealth Group, which owns Change Healthcare, takes all necessary steps to fix the situation. The association wants Congress to ensure there are no statutory impediments that would get in the way of relief.

AHA CEO Richard Pollack wrote that the cyberattack and downed systems have caused hospitals, health systems and providers to experience “extraordinary reductions in cash flow, threatening their ability to make payroll and to acquire the medical supplies needed to provide care.” Patients are struggling to get timely access to care, Pollack told congressional leaders.

The payment problem is unfolding in the commonwealth, MHA indicated.

“This is a serious disruption for every Massachusetts healthcare organization that relies on Change Healthcare for their daily operations – especially those that are now unable to get paid for the various services they provide to patients,” Karen Granoff, MHA’s senior director of managed care, said. “It’s yet another layer of financial distress on a system that is already struggling to stay above water. MHA and our members are working closely with state officials and our national partners as this situation evolves, and we will be advocating for any supports needed to minimize the effects on patient care, healthcare professionals, and the overall stability of the system.”