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Ransomware in RCM: Why Your Billing System Is an Overlooked Cybersecurity Risk

by Rob Stuart, CEO, Claim.MD 09/08/2025 Leave a Comment

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Rob Stuart, CEO, Claim.MD

When a major healthcare payment processor was hit by a ransomware attack in early 2024, medical practices across the country were thrown into chaos. Routine billing processes, like eligibility checks, claims submissions, and payments, all ground to a halt. Some providers waited weeks to get paid. Others struggled to reassure anxious patients amid financial uncertainty. For small and midsize practices, the disruption wasn’t just inconvenient; it was existential.

The incident exposed an uncomfortable truth: billing systems aren’t just financial tools; they are cybersecurity targets. And too often, they’re unprotected.

The Overlooked Risk in Revenue Cycle Management

For healthcare professionals, delivering quality patient care is the top priority. But maintaining a sustainable practice demands equal vigilance over billing processes — and the security of the systems that support them.

Revenue Cycle Management (RCM) includes every financial touchpoint of patient care: eligibility checks, coding, claim submissions, payment posting, and collections. Each of these steps involves sensitive patient data, positioning them as prime targets for cyberattacks.

Unlike large hospital systems, many healthcare organizations often rely on third-party vendors or outdated software. If those systems aren’t secure, or if staff aren’t trained to recognize phishing or fraud, it only takes one misstep to compromise both patient trust and operational viability.

Cyber Threats Are Financial Threats

The connection between cybersecurity and financial operations is often overlooked. A single cyber incident can delay reimbursements, spark HIPAA violations, and trigger costly system outages. Consider what’s at stake:

  • Delayed payments: Cash flow bottlenecks, missed payroll, lost patients
  • Data breach: Regulatory fines, legal exposure, reputational damage
  • System downtime: Interrupted care, manual workarounds, staff burnout

Healthcare providers can no longer treat cybersecurity as a back-office concern. It’s a core function of revenue integrity.

Secure Billing Starts with the Basics

Strengthening your cybersecurity posture doesn’t require a tech overhaul. Many organizations can implement these foundational safeguards quickly and affordably:

  • Be cautious with urgent requests: Cybercriminals often create a sense of urgency to prompt hasty decisions. Always verify the authenticity of urgent requests, especially those involving sensitive information or financial transactions.
  • Avoid unsolicited links and attachments: If you’re not expecting an email or message, refrain from clicking on links or downloading attachments. These could be phishing attempts designed to compromise your system.
  • Employee training and awareness: Educate staff about common cyber threats, such as phishing emails, and establish protocols for identifying and reporting suspicious activities.
  • Use unique passwords: Never reuse passwords across different accounts. Employ complex, unique passwords for each login, and consider using a reputable password manager to keep track of them.
  • Enable Multi-Factor Authentication (MFA): Enhance account security and reduce the risk of unauthorized access by requiring multiple forms of verification to access sensitive systems.
  • Regular software updates and patching: Keep all software, including Electronic Health Record (EHR) systems, up to date.
  • Data encryption: Ensure that all patient data, both stored and transmitted, is encrypted — rendering data unreadable to unauthorized individuals.

A Proactive Approach

Healthcare providers operate in an increasingly digitized, regulated, and targeted environment. Whether you manage billing in-house or outsource to a partner, your practice’s financial health depends not just on accurate coding and timely claims, but on how well you secure the infrastructure that supports them. Taking a proactive approach can help safeguard both patient trust and your bottom line:

  • Audit your billing systems and vendors: Identify who has access to sensitive data, how it’s stored, and whether proper safeguards are in place across your RCM workflow.
  • Establish an incident response plan: Prepare for potential billing disruptions, know who to contact, what systems to shut down, and how to communicate with staff and patients.
  • Invest in education: A trained front desk or billing team can recognize and prevent cyber threats before they impact your operations.

Cybersecurity isn’t just a compliance requirement—it’s a revenue protection strategy. In the wake of widespread industry disruptions, the most resilient providers are the ones acting now to secure their financial future.


 About Rob Stuart 

Rob Stuart is the founder and president of Claim.MD, a leading electronic data interchange (EDI) clearinghouse, helps to streamline the billing and collection process for providers, payers, and software vendors.

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Tagged With: Cybersecurity, Revenue Cycle Management

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