Common Well being Companies faces $67 million loss after cyberattack

Common Well being Companies reported an estimated pre-tax “unfavorable influence” of $67 million because of a cyberattack in 2020 that led to a community shutdown all through its U.S. amenities.

In line with a report launched this previous week, the well being system attributes a lot of the unfavorable influence to misplaced working earnings associated to decreased affected person exercise.

“Given the disruption to the usual working procedures at our amenities … sure affected person exercise, together with ambulance site visitors and elective/scheduled procedures at our acute care hospitals, had been diverted to competitor amenities,” famous UHS within the report.

In complete, the system’s reported internet earnings was $308.7 million through the fourth quarter of 2020 – a $63.5 million improve from the earlier 12 months. 


UHS, which operates about 400 amenities all through the nation and abroad, was hit with a large cyberattack this previous September that prolonged by way of the next month. The corporate reported an unfavorable estimated influence of $55 million pre-tax through the three-month interval ending on December 31, 2020.

As outlined within the quarterly report, the well being system suspended IT operations and delivered affected person care utilizing backup processes, together with “offline documentation strategies” (akin to pen and paper).  

UHS then labored with its safety companions and engaged third-party IT and forensic distributors to help, with no proof of knowledge misuse being recognized to date. Along with the prices from decreased affected person exercise, UHS notes that it incurred “important incremental labor expense, each inner and exterior, to revive info expertise operations as expeditiously as attainable.”  

“Moreover, sure administrative features akin to coding and billing had been delayed into December 2020, which had a unfavorable influence on our working money flows through the fourth quarter of 2020,” firm representatives added. 


As CynergisTek CEO Caleb Barlow advised us just lately, investing in cybersecurity might be dear, however it’s typically price it to keep away from the potential monetary fallout of victimization.  

“Regardless of how a lot you are spending on protection, it is a complete lot cheaper than paying for the expense after the growth,” stated Barlow.  

Though the UHS assault was probably the most extremely publicized cyber incidents final 12 months, that well being system definitely wasn’t alone. In October, an assault disrupted companies on the College of Vermont Well being Community, lead the state governor to deploy the Nationwide Guard in response.

And this previous summer time, UC San Francisco paid hackers $1.14 million to decrypt information that, it stated, was vital to its educational work as a “college serving the general public good.”  


“Though we will present no assurance or estimation associated to the receipt, timing or quantity of the proceeds that we might obtain pursuant to business insurance coverage protection we now have in reference to this incident, we imagine we’re entitled to restoration of nearly all of the last word monetary influence ensuing from the cyberattack,” stated UHS representatives within the assertion.  



Kat Jercich is senior editor of Healthcare IT Information.
Twitter: @kjercich
Electronic mail: [email protected]
Healthcare IT Information is a HIMSS Media publication.

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