Amid a national health payment crisis, Biden administration officials have called upon UnitedHealth Group (NYSE:UNH) to take decisive action to stabilize the U.S. health system.
The crisis, triggered by a cyberattack on Change Healthcare, has left hospitals and healthcare providers grappling with financial instability, jeopardizing their ability to deliver essential care.
Led by Health and Human Services Secretary Xavier Becerra and White House domestic policy chief Neera Tanden, the administration implored Andrew Witty, CEO of UnitedHealth, and other industry leaders to expedite emergency funding for affected providers.
The meeting, spearheaded by Anne Neuberger, deputy national security adviser, brought together government officials and industry leaders, with discussions focused on the dire consequences of the ongoing payment crisis, the Washington Post noted.
Despite UnitedHealth’s announcement of a timeline to restore its network by March 18, healthcare leaders brace for prolonged disruptions.
Cybersecurity analysts suggest that a full recovery may take much longer, possibly extending to several months or even a year.
The emergency loan program offered by UnitedHealth’s Optum unit has been deemed insufficient by providers, prompting calls for additional funding.
Federal authorities have initiated emergency funding efforts, with the Centers for Medicare and Medicaid Services committing to release funds for affected physicians.
However, criticisms linger regarding the adequacy of aid for smaller healthcare organizations compared to larger hospitals.
In a recent statement, UnitedHealth announced plans to restore disrupted services for its medical claims and payments platforms by mid-March following a cyberattack that targeted its Change Healthcare tech unit.
The attack, orchestrated by the hacking group ALPHV, also known as “BlackCat,” severely impacted the company’s ability to process insurance claims and payments, affecting healthcare providers, including hospitals, and disrupting electronic pharmacy refills.
Price Action: UNH shares are up 0.46% at $491.38 on the last check Tuesday.
Photo by Trevor Bexon on Shutterstock
