HEALTHCARE RECORDS MANAGED BY BUSINESS ASSOCIATES SHOW SIGNIFICANT RISK TO BOTH HEALTHCARE PROVIDERS AND PATIENT CARE

This latest cyber attack on Change Healthcare could be the largest in U.S. history, already costing them millions of dollars, but costing their customers much more...their personal information being leaked on the Dark Web. Advizex, a leading technology provider of infrastructure and enterprise application solutions, emphasizes that healthcare records managed by business associates present considerable risks to both healthcare providers and patient care.

INDEPENDENCE, Ohio, May 9, 2024 /PRNewswire/ -- In 2023, more than 93 million healthcare records were exposed or stolen in data breaches at business associates compared to 34.9 million records in breaches at healthcare providers. According to the HIPAA Journal, one of the biggest challenges in healthcare cybersecurity is securing the supply chain. The chart below shows data breaches by reporting entity.

This data highlights the importance of securing the supply chain, conducting due diligence on vendors before their products and services are used, and monitoring existing vendors for HIPAA Security Rule compliance and cybersecurity.

The 2024 Change Healthcare attacks could prove to be the most consequential cyberattack on the U.S. Healthcare system in history.

• One in three patient records in the U.S. passes through Change Healthcare.
• Before the attacks, Change Healthcare was handling 15 billion transactions a year with the capability to process 500 transactions per second. The AHA quotes the company as saying it "touches one in three patient records," which comes out to around $1.5 trillion in claims.
• Patient Care Compromised: As systems were locked and data held ransom, patients were unable to access records, leading to delayed treatments and forcing tough choices at pharmacies regarding essential medications.

"Healthcare cyberattacks don't just breach data?they endanger lives, escalating waiting times, prolonging hospital stays, and tragically increasing patient mortality rates," warns Jon Latshaw, Verticals CTO at Advizex.

• Operational Disruption: Healthcare providers are now forced to manage claims and authorizations manually, a labor-intensive process that harks back to pre-digital days. This additional administrative burden adds strain in an industry already plagued by burnout.

Small Practice Physicians Hit Incredibly Hard by This Attack
Provider survey results from the American Medical Association demonstrate that the economic harm to practices and patient-care impact of the Change Healthcare cyber-attacks are ongoing.

A recent AMA survey showed this attack to dramatically impact the viability of physician practices across the country, and, according to respondents, has serious implications for patient care: 36 percent of respondents reporting suspension in claim payment; 32 percent being unable to submit claims; and 22 percent being unable to verify eligibility for benefits. Practices of 10 or fewer physicians appear to be particularly hard hit, struggling to keep their doors open.

"The disruption caused by this cyber-attack is causing tremendous financial strain," said AMA President Jesse M. Ehrenfeld, MD, MPH. "These survey data show, in stark terms, that practices will close because of this incident, and patients will lose access to their physicians. The one-two punch of compounding Medicare cuts and inability to process claims as a result of this attack is devastating to physician practices that are already struggling to keep their doors open."

About Advizex
Since 1975, Advizex has been the technology solutions leader, helping IT professionals solve complex business challenges. We deliver solutions through our unparalleled knowledge, proven approach, and deep partnerships. Advizex has locations in 14 major markets and headquartered in Independence, OH. They are an affiliate of Fulcrum IT Partners, who has an expanding portfolio of established and successful IT solution companies in the UK, Canada, and the U.S., with proven expertise in cybersecurity, cloud, consumption-based IT, and managed services. Fulcrum is dedicated to using technology to deliver better business outcomes to vertically focused industries through its breadth of expertise and longstanding relationships with respected industry partners.

For more information about how we can help secure your data contact: Jon Latshaw, Verticals CTO, [email protected]

Sources:

• https://www.hipaajournal.com/healthcare-data-breach-statistics/ (figure 1)
• https://www.ama-assn.org/practice-management/sustainability/change-healthcare-cyberattack
• https://www.ama-assn.org/press-center/press-releases/physicians-struggle-keep-practices-afloat-after-change-cyberattack

Caitlin Davies
Communications and Events Manager | Advizex
M: 440.935.5083

SOURCE Advizex