Hassan secures better loan terms for NH hospitals hit by cyberattack
Mar. 22—UnitedHealth Group was improving its offer of loan assistance to New Hampshire hospitals trying to avoid financial insolvency after a massive cyberattack took down the insurer's payment platform, U.S. Sen. Maggie Hassan said.
"New Hampshire hospitals, in particular our rural hospitals, saw as much as 98 percent of their cash flow disappear overnight as a result of this cyberattack — putting at serious risk their ability to stay afloat and care for patients," said Hassan, D-N.H.
The North Country Healthcare System, which includes Androscoggin Valley Hospital in Berlin, Weeks Medical Center in Lancaster and Upper Connecticut Valley Hospital of Colebrook, has been losing $2.5 million a day in revenue since the February 21 attack on a payment claims program run by Change Healthcare, which is owned by the UnitedHealth Group.
Because of the number of patients with health insurance through UnitedHealth, all New Hampshire hospitals were affected to some degree, but the hardest-hit were the North Country Healthcare system hospitals and Monadnock Community Hospital in Peterborough, because they relied on the insurance firm to process all their payments.
New Hampshire Hospital Association President Steve Ahnen credited Hassan with pressuring UnitedHealth Group CEO Andrew Witty to make assistance available to providers on more favorable terms until the firm's platform is fully restored.
"This problem is going to be with us for a while and the initial terms UnitedHealth offered to hospitals were a loan that no business would voluntarily enter into," Ahnen said during an interview.
"Senator Hassan really went to bat for our members and forced UnitedHealth to come up with assistance that can keep them functioning in an already-very difficult economic climate."
The new terms make clear that hospitals would not face any fees or interest for the loans they received. Once the system is back up and fully operational, hospitals will have 45 business days to repay the loan proceeds.
Change Healthcare's billing software is used for about half the medical claims processed in the country and is relied on by about 900,000 doctors, 33,000 pharmacies, 5,500 hospitals and 600 laboratories.
In the initial aftermath of the attack, some large health systems said they were losing $100 million a day.
Hassan sought help
After the hack happened, Hassan said she spoke with President Joe Biden when he visited New Hampshire on March 11. She also talked recently with Health and Human Services Secretary Xavier Becerra as she pursued these negotiations.
"I am pleased that UnitedHealth has responded to the concerns of small and rural providers in New Hampshire," Hassan said.
The cyberattack was the largest on a health care company in U.S. history. UnitedHealth Group processes 15 billion insurance claims a year and handles 1 in every 3 medical records.
A hacking group called Blackcat has claimed responsibility for the attack.
The U.S. Department of Health and Human Services Office of Civil Rights said it is investigating the breach.
Witty, the UnitedHealth CEO, said the company has made more than $2 billion in assistance available to health care providers harmed by the hack.
Ahnen said while some online operations the company offers have been restored, New Hampshire hospitals are still unable to process new claims under this system.
"This has been an operational nightmare for our members while at the same time they are dealing with inflation, a workforce shortage, supply chain issues and a lack of health care capacity needed to transfer all their patients out of emergency rooms," Ahnen said.
