WITH NATIONWIDE HEALTHCARE CYBERATTACK DELAYING PAYMENT FOR UPSTATE NY HOSPITALS & PHARMACIES, SCHUMER LAUNCHES TWO-PRONGED PUSH IN ITHACA TO GET ALL HANDS ON DECK TO PROVIDE RELIEF TO IMPACTED HEALTHCARE PROVIDERS - LIKE CAYUGA HEALTH - TO ENSURE PATIENTS ACROSS SOUTHERN TIER CONTINUE TO RECEIVE TOP-NOTCH CARE

A Massive Cyberattack Last Week Against Change Healthcare Downed A Vital Network For Hospitals & Pharmacies– Including Cayuga Health And Many Others Across Upstate NY – Leaving Healthcare Providers Unable To Be Paid And Process Insurance Claims, Which If It Continues Could Lead To Reductions In Patient Care

Schumer Says Feds Must Accelerate Payments And Cut Through Red Tape To Get $$ To NY Healthcare Providers To Minimize Cash Flow Interruptions And Ensure They Have The Support They Need To Continue To Provide Critical Services To NY Communities

Schumer: We Can’t Let A Computer Hack Crash Payments For Our Healthcare Systems, Feds Must Provide Relief To NY Hospitals ASAP

Standing at Cayuga Health in Ithaca following the nationwide Change Healthcare cyberattack last week impacting healthcare providers across NY, U.S. Senate Majority Leader Charles E. Schumer today said he is calling on the Centers for Medicare and Medicaid Services (CMS) to get all hands on deck to help impacted New York hospitals – like Cayuga Health – recover from the impacts of this vicious ransomware attack. Schumer explained how right now NY healthcare providers are struggling to get paid, process insurance claims, and fill prescriptions, with some seeing millions lost every day as result of this breach. The senator said if this cash-flow interruption continues without remedy, ripping larger holes in already strained budgets, it could lead to major issues, such as layoffs or even reductions in care, at hospitals that provide critical services to communities across Upstate NY.

First, Schumer said it is imperative federal law enforcements make this case a top priority, as it is a calculated attack on our nation’s critical healthcare system, and we must hold those responsible accountable for their actions. Second, Schumer is now pushing for CMS to use its authority under the Accelerated and Advance Payment Program, which allows CMS to make payments to hospitals in advance of receiving claims from them, to alleviate the financial burden healthcare providers are facing from this terrible cyberattack to get the payments they need. Schumer said swift action from CMS can cut through the bureaucratic red tape to streamline claims so healthcare providers get the relief they need now.

“Hospitals are essential to quality patient care, but this latest vicious cyberattack has blocked many healthcare providers and pharmacies from getting paid and processing insurance claims. If this continues it can lead to layoffs or even reductions in care. The delay in payments is costing hospitals across Upstate NY millions for every single week this continues, and some people are even struggling to get prescriptions filled at their local pharmacy. That’s why I am calling on CMS to use its authority to cut through the red tape and provide accelerated and advanced payments to impacted healthcare providers just as they did during COVID. We need to give our hospitals the immediate relief they need so that they won’t be forced to reduce patient care,” said Senator Schumer. “We can’t let hackers risk the financial stability of healthcare providers and even critical care to patients across America. CMS must act now to help our hospitals. I will keep fighting to ensure patients across America continue to receive the high-quality care they deserve.” 

“Multiple hospitals’ ability to make payroll is in jeopardy due to the ongoing impacts of this cyberattack. Providers need relief now and will need it for as long as this disruption continues,” said Bea Grause, RN, JD, president, Healthcare Association of New York State. “HANYS applauds Senate Majority Leader Schumer’s swift action to call on CMS to take steps to ensure patient access to care is stable during this evolving incident.”

“The operational and financial challenges that the Change Healthcare cyberattack is causing for New York’s hospitals could not come at a more precarious time,” said Greater New York Hospital Association President Kenneth E. Raske. “As hospitals continue their recovery from the COVID-19 pandemic and grapple with rising costs, any degree of cash-flow interruption could pose immediate consequences for patient care delivery. We are extremely fortunate to have Senator Schumer in our corner as we try to fully understand the magnitude and duration of this incident. The entire hospital community thanks Senator Schumer for his advocacy and leadership.”

Schumer said that the Advanced and Accelerated Payment program was a core part of keeping hospitals afloat during COVID, with roughly $100 billion loaned to hospitals as they had to shut down all non-emergency services. He said the program is a key tool CMS can use to respond to hospital crises.

In addition, Schumer said it is imperative the federal law enforcement hold perpetrators accountable for this vicious attack and he has also asked the FBI to make this case a top priority. Schumer explained that hackers are known to target vulnerable critical infrastructure like the health care system to maximize the damage caused by their cyberattacks. The senator explained when hospitals are unable to process claims, bill patients, and receive payments, their operations are severely impacted because they don’t have the revenue to operate at full capacity. Schumer said while healthcare providers are trying to figure out alternatives for how to get claims submitted or fill prescriptions, if federal action is not taken soon, the downed system could mean hospitals and healthcare providers will be unable to pay salaries for staff, acquire necessary medications and supplies, or pay vendors.

Impacts from this crippling cyberattack are being felt throughout the Southern Tier. Cayuga Health has over 20K claims on hold and, as a result, over $1.5M a day in cash flow suspended. Schumer said unlocking these payments would get cash flowing immediately back to Cayuga Health and other hospitals, addressing the current adverse impact on their cash flow and safeguarding patient care, which is why he’s calling on CMS to take all possible measures to provide relief to hospitals and healthcare providers who have been impacted by the Change Healthcare cyberattack.

Schumer was a key architect of using the Advanced and Accelerated Payment program during the height of the pandemic, which brought in billions across the country when they had to shut down all non-emergency lines of care. Schumer also led the passage of the American Rescue Plan, which secured historic investments in New York hospitals to provide the supplies, emergency response, testing, and public health workforce to stop the spread of COVID-19. In 2022, Schumer also secured a first-ever agreement from FEMA that creates a pathway for reimbursement on previously rejected expenses incurred by hospitals in the early days of the COVID-19 pandemic, unlocking hundreds of million for New York’s hospitals, which otherwise would have been shouldered by the hospitals amidst the ongoing public health emergency.

A copy of Schumer’s letter to the head of CMS can be found below:

I write with an urgent request following the massive cyberattack last week targeting Change Healthcare, subsidiary of UnitedHealth Group, that has severely impacted operations at pharmacies, hospitals, and healthcare providers throughout New York State and across the country. The cyberattack resulted in a widespread network interruption, disrupting insurance claims and payment processes nationwide, with Change Healthcare suspending more than 100 services as it works to identify system vulnerabilities and recover user information.

Across New York State, healthcare providers that rely on the services of Change Healthcare are facing acute financial and operational challenges that have lasted more than a week and show no sign of resolution. As a consequence of the termination of Change Healthcare’s systems, hospitals, pharmacies, and healthcare providers are facing an immediate – and rapidly intensifying – adverse impact on their cash flow and, ultimately, on their financial solvency. While Change Healthcare remains offline, impacted healthcare institutions and providers will remain hamstrung and are unable to complete the necessary tasks to deliver care. Patients are unable to receive the eligibility checks needed to determine if their insurance will cover a prescribed treatment, or even get their needed medications filled at the local pharmacy. Hospitals are struggling to process claims, bill patients, and receive electronic payments, leaving them financially vulnerable with no anticipated timeline for resolution. Many hospitals are approaching a financial cliff where they will no longer be able to rely on their cash on hand.

I urge that the Centers for Medicare & Medicaid Services (CMS) to immediately make Accelerated and Advanced Payments available to the hospitals, pharmacies, and relevant providers who have been impacted by the Change Healthcare cyberattack. In addition, CMS should also direct Medicare Administrative Contractors (MACs) to use a streamlined and efficient process to ensure claims processing and payments resume in a timely manner. The longer this disruption persists, the more difficult it will be for hospitals to continue to provide comprehensive healthcare services to patients.

The attack on Change Healthcare, one of America’s largest healthcare companies, underscores the importance of robust cybersecurity measures in safeguarding sensitive patient information and the need to address vulnerabilities promptly. Once again, I urge CMS to take immediate action to help minimize the cascading consequences of this attack and ensure the continued delivery of lifesaving patient care services in communities across New York State.

Thank you for your attention to this important matter. 

Sincerely,

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