Barrasso Demands Solutions for Rural Hospitals Hit by Major Cyberattack

May 1, 2024

Barrasso Demands Solutions for Rural Hospitals Hit by Major Cyberattack

"Rural hospitals all across Wyoming and the U.S. provide access to essential health services… It's evident from how much hospitals like [ours] spend that [they] take cybersecurity very seriously. Change Healthcare's commitment to cybersecurity - it's not as clear."

WASHINGTON, D.C. - Today, U.S. Senator John Barrasso (R-Wyo.) questioned UnitedHealth Group CEO Andrew Witty on a cyberattack against Change Healthcare. The February cyberattack is the largest healthcare cyberattack to ever occur and it is still affecting health care providers across the United States. The attack disrupted health care services, compromised patients' personal data, and imposed financial losses on health care providers - particularly rural hospitals and small medical practices.

Specifically, Senator Barrasso reported the attack's impact on Wyoming's local hospitals and pressed Witty on whether Change Healthcare is addressing claim processing issues, improving security measures with multi-factor authentication, and protecting small medical practices from devastating financial liability in the future.

Andrew Witty testified at today's Senate Committee on Finance hearing on Assessing the Change Healthcare Cyber Attack.

On the Cyberattack's Impact on Sheridan Memorial Hospital

"Since the Change Healthcare cyberattack, I've heard from hospitals and providers all across Wyoming - and I'm sure you've heard from people all across the country.

"Sheridan Memorial Hospital in Sheridan, Wyoming shared with me how the attack has impacted them and their patients. It took 26 days for the claim processing to be restored at Sheridan Memorial.

"Like thousands of other hospitals, they experienced financial hits that are going to take them months from which to recover. Over the 26 days, they were delayed in filing 17,000 claims, which resulted in about $20 million in unpaid services.

"Rural hospitals all across Wyoming and the U.S. provide access to essential health services. As you know, they represent the most financially vulnerable hospitals because when a hospital closes, it's usually a rural hospital.

"So, with 50% of rural hospitals already operating right now in the red, this breach may send some of them into a financial spiral from which they can't come back. And those communities are often rural frontier areas where there's not another hospital nearby.

"So, how are you prioritizing the processing of claims?"

Follow-up:

"We want you to make sure you're specifically prioritizing these rural and financially vulnerable hospitals because they need to keep their doors open and they're the only sources of supply."

Click here to watch Sen. Barrasso's remarks on impacted rural hospitals.

On Improving Cybersecurity Measures

"There's been a lot of discussion about two-factor verification today.

"We have a small community hospital - they have a health fair I try to get to every year - in Kemmerer, Wyoming, a town of 2,500 people. In 2023, they spent nearly $1 million on cybersecurity.

"It's evident from how much hospitals like our South Lincoln Medical Center spend that hospitals take cybersecurity very seriously. Change Healthcare's commitment to cybersecurity - it's not as clear.

"We've had just about every person here ask those questions. I've heard the responses that you've given - to me, it seems like an excuse.

"South Lincoln Medical Center in Kemmerer even has this multi-factor authentication. They're operating in the red. And Change Healthcare was established in 2007 - this was a hospital that was established 1961. This is a system that has been already updated.

"So, did you lack the financial resources to implement a multi-factorial authentication system? I'm just not sure why you haven't had this in place yet."

Click here to watch Sen. Barrasso's remarks on improving cybersecurity measures.

On Protecting Small Practices from Financial Liability

"I practiced orthopedic surgery in Wyoming for 25 years. We had a small group practice - five to six physicians. The small group practices are getting hit as well as in addition to the larger practices.

"Do you have any plan to change policies to ensure that providers aren't financially on the hook in the future?"

Click play to view the video or follow this link
https://www.youtube.com/watch?v=Qg426WF44OY

Permalink: https://www.barrasso.senate.gov/public/index.cfm/2024/5/barrasso-demands-solutions-for-rural-hospitals-hit-by-major-cyberattack