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On February 21st, 2024, Change Healthcare, a subsidiary of UnitedHealth Group and one of the largest health information exchange platforms in the United States, was the target of a ransomware attack that shut down critical claims processing systems.
Ransomware involves a malicious cyber actor gaining access to an organization’s digital systems and deploying malware that locks system processes until a certain action is made. In the case of Change Healthcare, the actors behind the attack requested $22 million to restore access to the organization’s systems, which reports suggest they’ve paid.
Change Healthcare’s cyber attack poses widespread cash flow challenges for healthcare providers and pharmacies, where they aren’t paid for services performed through insurance. Federal officials, along with The Centers for Medicare and Medicaid Services (CMS), have since started an emergency funding program for the affected healthcare providers. Still, this program isn’t as perfect as the government may have initially envisioned.
The reality is that any type of government funding is slow to arrive. The attack happened in mid-February, and halfway through March, many providers have yet to receive their emergency funding. For healthcare providers seeking faster access to capital or those interested in a short-term option to fill their receivable gap as they wait for their emergency funding, National Business Capital offers a convenient, efficient, and strategic avenue to getting the most competitive option available.
Continue reading for more information on the Change Healthcare cyber attack and how businesses can handle it. Or, if you want to explore the options you qualify for with National Business Capital, complete our easy application to unlock the medical receivable options.
Are you an affected healthcare provider? Click here to read the most relevant information for your business.
How Has the Change Healthcare Cyber Attack Impacted the Healthcare Community?
Change Healthcare works with the healthcare community in a number of ways, including:- Streamlining Payments and Billing: Change Healthcare assists healthcare providers in getting paid for the services they provide by handling the insurance company billing process and processing payments.
- Checking Insurance Eligibility: They will verify a patient’s insurance coverage before they receive treatment so doctors can tailor a specific treatment plan.
- Improving Hospital Operations: The organization also provided healthcare providers with tools and support to manage their finances and deliver services more effectively.
When Will CMS Emergency Funding Arrive?
The disbursement timeline of CMS emergency funding isn’t clear, but it likely won’t arrive until Change Healthcare’s systems are back up and running. The latest update was on March 7th, 2024, when Change Healthcare announced its service for prescription claim submissions and payment systems were restored. Still, the organization projects a full recovery by March 18th, 2024, which means the healthcare community might need to hold out a bit longer before funding arrives. In the interim, healthcare providers should seek an additional funding source to help alleviate the pressure on their cash flow until then. National Business Capital is working with the healthcare community to establish revolving lines of credit (up to $750,000) to support their operations as they assist patients.Financing Options for Healthcare Providers
Although CMS has already established that emergency funding is coming, the drawn-out disbursement timeline leaves businesses without revenue for far too long. Healthcare providers nearing the end of their cash reserves should seek out fast-funding capital options to bridge this gap and ensure they’re able to provide adequate treatment to patients. National Business Capital maintains a diverse lender platform to ensure clients are able to find the most competitive financing options as quickly and conveniently as possible. Here are a few programs that can help boost your cash flow during this challenging time.| Type of Financing | Description |
|---|---|
| Revolving Business Line of Credit | Flexible access to capital, where you can draw funds as needed up to a certain limit. It’s a short-term solution that can become a long-term resource with no hard credit checks or prepayment penalties. |
| Business Term Loans | Lump sum funding to manage over a short or long term, depending on your needs. Simple APR interest, with potential credit-building perks. |
| Revenue-Based Financing | Lump sum funding to manage over a short or long term, depending on your needs. Eligibility criteria focus on historical cash flow instead of credit scores, and businesses repay the funds through automatic deductions from their sales. |
Contact National Business Captial to Unlock Your Medical Receivables
Every day matters when running a business. For an industry as critical as healthcare, this sentiment takes on a different, more urgent dimension. National Business Capital has helped businesses in the healthcare community overcome a variety of challenges throughout the last decade – and this one is no different. We’re here to help support your cash flow, so you can stop worrying about when the emergency funding will arrive and get back to caring for your patients. We’re ready when you are. Complete our easy application to unlock the medical receivable financing options your practice qualifies for.ABOUT THE AUTHOR
Phil Fernandes serves as Chief Operating Officer for National Business Capital. He boasts 15 years of experience in sales and 10+ years of management experience as National’s VP of Financing/Analytics. Phil is also an excellent writer who's completed the Applied Business Analytics executive program at MIT and regularly contributes articles to National Business Capital’s blog.
