Ongoing Impact of Change Healthcare Cyberattack

Kahn III President and CEO STATEMENT of the Federation of American Hospitals to the U.S. [...] The FAH is the national representative of more than 1,000 leading tax-paying hospitals and health systems throughout the United States. FAH members provide patients and communities with access to high-quality, affordable care in both urban and rural areas across 46 states, plus Washington, DC and Puerto Rico. [...] The Change Healthcare cyberattack paralyzed a core engine of our healthcare system and disrupted critical electronic connections between patients, providers, and insurance companies. Despite this, hospitals and healthcare providers have continued to provide high-quality care 24/7/365 to all patients who come through our doors. The FAH believes cybersecurity is a shared responsibility and effor [...] Hospitals have worked diligently to find workarounds using alternative clearinghouses to submit claims to insurers and replace other critical lost functions. Even with these efforts, the restoration of the normal flow of claims submission, receipt of payment, and resolution of claim rejections and denials will take months. The complexities of adjusting to a new clearinghouse leads to significan [...] These factors all amount to additional burdens on providers already struggling to adapt and already operating on strained resources. As the health care system navigates the aftermath of the attack, the focus must be on supporting providers as they work through the administrative backlog and recover from financial strains caused by this unprecedented attack. [...] Insurers must also be held accountable for ensuring timely payments and reducing administrative burdens, such as temporary suspension of requirements for prior authorization, timely filing, and appeals deadlines to facilitate recovery. [...] Increasing Cybersecurity The FAH recognizes the critical importance of cybersecurity in healthcare delivery. [...] FAH members are committed to protecting patient data and ensuring the integrity of healthcare services. Challenges persist in the face of evolving cyber threats and no organization, including the federal government, has immunity from cyberattacks. The FAH believes that any effort to enhance cybersecurity in the healthcare sector should prioritize preserving patients' access to care. [...] Hospitals are leaders in proactive cybersecurity efforts. In fact, according to the 2023 Department of Health and Human Services (HHS) Hospital Resiliency Landscape Analysis, hospitals’ cybersecurity measures include encryption mechanisms, consumption of threat intelligence from other organizations, 24/7/365 security operations and incident response centers, vendor risk assessments, segmentatio [...] We thank you for your focus on the Change Healthcare cyberattack and look forward to working with the Committee on these critical issues. 1 United States Department of Health and Human Services. (n.d.).