A health care provider in Columbia is feeling the financial impacts of Change Healthcare’s recent data breach as it struggles to get reimbursed for its patient services.
Change Healthcare, a property of UnitedHealth Group, announced 10 days ago that it was hacked by ransomware group ALPHV, more commonly known as Blackcat.
Change Healthcare operates a digital clearinghouse, which allows health care groups to virtually file insurance claims. The group then helps connect providers with insurance companies to get reimbursed for their services.
According to Change Healthcare’s update on March 2, the organization is still working to address the cyberattack. It has enlisted the help of law enforcement, as well as third-party consultants to find a solution.
In the meantime, the breach is impacting the more than 6,000 hospitals and one million physicians who work with Change Healthcare, including The Bluffs.
Located in Columbia, the nonprofit health center currently provides care to 118 people. According to The Bluffs finance director Julia Fairchild, the organization serves as a rehab center for some, while many other seniors use the facility for long-term care.
“[We serve] people who are in lower income brackets that cannot necessarily afford care like this,” Fairchild said. “Over half of our residents are Medicaid or VA contracts, so we really take care of people who wouldn’t have anywhere else to go.”
Fairchild said The Bluffs hasn’t been able to bill claims for any of its insurance claims the way it normally would, spanning back to the past month.
“I’m sitting on all of my February claims right now,” Fairchild said. “I will be able to bill for some of them using a workaround, but the impact is major. It’s an entire payroll at least of claims that I’m unable to get reimbursed the way that I usually do.”
According to Fairchild, getting these reimbursements in a timely manner is crucial to the nonprofit’s ability to pay for the cost of care, specifically in how it pays employees.
“Our cash flow is very important to making sure that we can continue to pay our employees to provide the care that the people who live here really need,” Fairchild said.
While The Bluffs has enough finances stored to pay its employees in the short term, Fairchild said the issue must be addressed.
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“I mean we are still in the very short window of how this is going to affect us long-term, but if the problem isn’t resolved long-term, we will not be able to continue operations as normal,” Fairchild said.
Amanda Thompson has worked at The Bluffs for a year, clocking about 40 hours per week.
“I make sure they get up for their daily activities, just dress and change and feed them, just making sure that they’re happy and you know, have a great day,” Thompson said.
According to Thompson, if health care groups like The Bluffs are unable to get reimbursed and therefore may be forced to change how they pay employees, it could have a great impact on the industry as a whole.
Thompson said the care The Bluffs provides is life-changing for some patients.
“We’re the family that’s there when their family isn’t. We just take care of them when their family can’t,” Thompson said. “I mean, we’re important to them and they’re important to us. We’re their family.”
Moving forward, Fairchild said one industry-wide solution would be to have a more diversified market of clearinghouses for providers to use.
“If and when this happens again, because that’s the age that we’re living in, that’s a solution that doesn’t bring the health care industry to a screeching halt,” Fairchild said. “There’s people who can’t bill pharmacies. Prescriptions aren’t being filled, procedures are being stopped – all because there was a cyberattack on one group.”
Fairchild said The Bluffs hasn’t heard anything from Change Healthcare or UnitedHealth Group specifically, but the facility has been in contact with the software group it uses. Fairchild said the software group is actively working on using a different clearinghouse in the future or having a backup clearinghouse moving forward.
She said The Bluffs will continue to find solutions to ensure it continues to make payroll.
The U.S. Department of Health and Human Services also announced a list of guidelines Wednesday that the Centers for Medicare & Medicaid Services (CMS) is currently following to help providers file claims during this time.