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U.S. healthcare providers, such as hospitals and medical facilities, can expect some credit impact from the recent cybersecurity incident at UnitedHealth (NYSE: UNH) Change Healthcare health technology unit, ratings agency Moody’s said.
His opinion presents itself as the cyber attack carried out by The Blackcat/ALPHV hacking group’s issue in late February remains largely unresolved, placing healthcare facilities nationwide in difficulty as the unit functioned as a central hub for processing insurance claims in the sector.
“The ultimate impact of credit on suppliers will largely depend on the effect of payment delays on the cash flow needed to meet expenses,” said Kailash Chhaya, senior analyst at Moody’s.
According to Chhaya, suppliers who rely solely on Change cannot file any compensation claims, while many large suppliers who use multiple systems can mitigate the impact.
On Thursday, UnitedHealth (UNH) pledged to restore Change’s claims network and software by mid-March. The company said it will continue to provide financial support to healthcare workers affected by the incident.
Immediately after the attack, Moody’s said the incident would be “credit bad” for UnitedHealth (UNH).
However, this week, Bank of America named UNH its top pick in the managed care sector, dismissing concerns about hacking and citing an attractive valuation after the recent sell-off.
US healthcare providers include: HCA Healthcare (HCA), Community Health Systems (CYH), Surgery Partners (SGRY), Tenet Healthcare (THC), SunLink Health Systems (SHY), Universal Health Services (UHS), Select Medical Holdings (SEM), Acadia Healthcare (ACHC), LifeStance Health Group (LFST)