On Thursday, two class action lawsuits were lodged against Change Healthcare by healthcare providers following allegations of the company’s failure to protect itself from a cyberattack, causing significant disruption in the healthcare system. The lawsuits were filed by a Chicago-area mental health provider and a Mississippi-based obstetrician and gynecological office, along with their respective offices. Together, these providers are holding Change Healthcare, UnitedHealth Group, and Optum accountable for a cyberattack that left providers nationwide unable to complete key services such as verifying benefits, submitting claims and prior authorizations, or receiving payments for patient work. One provider is dealing with an outstanding bill of more than $100,000 as a result of the event. Law.com published details about the incident.
According to Chicago-based attorney Thomas A. Zimmerman, Jr. at the Zimmerman Law Offices, this cyberattack is causing a great financial burden on healthcare providers. For instances, the plaintiffs were forced to dip into their retirement savings in order to meet payroll needs, purchase necessary medications for their patients, and cover operating costs. This severe financial crunch was borne out of their inability to get their claims either pre-authorized or, if they had been submitted, they weren’t being paid.