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US providers could see credit impact from Change Healthcare hack, Moody's says
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US providers could see credit impact from Change Healthcare hack, Moody's says
Mar 8, 2024 4:59 PM

March 8 (Reuters) - Ratings agency Moody's said on

Friday that U.S. hospitals, physician facilities and other

medical providers could see a credit impact resulting from

disruptions from the hack at UnitedHealth's ( UNH ) Change

Healthcare, which processes medical insurance claims and

payments.

The unit, which processes about 50% of medical claims in

the U.S., was breached on Feb. 21 by a hacking group called

ALPHV, also known as BlackCat.

"The ultimate credit impact on providers will largely

depend on the effect of payment delays on cash flow needed to

meet expenses," said Kailash Chhaya, senior analyst for Moody's

Ratings.

Providers that rely solely on Change face an inability

to file any claims, Chhaya said.

The expenses can include labor to handle processing

claims through slower, even manual methods.

Many large providers use multiple systems, mitigating

effects of the disruption. The system shutdown has also affected

pre-treatment authorization, causing delays in administering

certain services.

UnitedHealth ( UNH ) on Thursday said it expects to

restore disrupted services

for medical claims and payments platforms by mid-March.

UnitedHealth ( UNH ) did not immediately respond to a Reuters

request for comment.

Last month, Moody's

said

the hack was a "credit negative" for the company.

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