What You Should Know:
– A recent American Medical Association (AMA) survey reveals the ongoing crippling effects of the Change Healthcare cyberattack on physician practices across the United States.
– The survey was conducted after UnitedHealth Group (UHG) said that claims would be flowing by the weekend of March 23. Despite UHG’s assurances, the attack, which began in February 2024, has disrupted claim processing and caused significant financial strain, jeopardizing patient care and potentially forcing practice closures.
– The AMA survey underscores the vulnerability of physician practices and the potential domino effect of disruptions in healthcare IT systems.
Key findings of the survey include:
- Claims Processing Issues:
- 36% of respondents reported a suspension in claim payments.
- 32% were unable to submit claims altogether.
- 22% faced difficulties verifying patient insurance benefits.
- Financial Strain:
- 80% of practices reported lost revenue due to unpaid claims.
- Over half (55%) dipped into personal funds to cover expenses.
- 44% couldn’t purchase necessary supplies.
- 31% were unable to meet payroll obligations.
- Impact on Patient Care:
- The survey suggests potential implications for patient care due to disrupted services.
- Small Practices Hit Hardest:
- Practices with 10 or fewer physicians appear to be disproportionately affected.
Despite Challenges, Practices Remain Open for Now
While facing significant financial hardship, only 15% of practices reported reducing their operating hours. Many have sought financial relief through:
- Advance payments
- Temporary funding assistance
- Loans
“The disruption caused by this cyber-attack is causing tremendous financial strain,” said AMA President Jesse M. Ehrenfeld, M.D., 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.”
