The Growing Threats of Cyberattacks on Healthcare Organizations
The healthcare industry is frequently targeted by cybercriminals, and the risks are becoming even more severe. In 2020, one of the largest cybersecurity attacks on the healthcare industry targeted Universal Health Services (UHS). The ransomware attack disrupted their operations for weeks, costing the organization an estimated $67 million in damages and lost revenue. This breach not only affected patient care but also caused reputational damage and significant financial losses.
Another recent attack occurred at Optum, one of the country’s largest healthcare service providers. Hackers accessed sensitive patient data, highlighting how even the most well-established organizations are vulnerable to cyber threats. This attack serves as a reminder that no one in the healthcare industry is completely safe from breaches, regardless of size or reputation.
Additionally, ransomware attacks against healthcare organizations have seen a dramatic rise. These attacks often target small and mid-sized healthcare providers who are less likely to have the necessary cybersecurity infrastructure or insurance to mitigate the risks.
A 2019 attack on LabCorp, one of the country’s largest medical testing companies, exposed the personal and health information of over 7.7 million patients. The breach, caused by inadequate security practices, forced LabCorp to spend millions in legal and recovery costs.
These real-world examples show just how important it is to have cybersecurity insurance that can cover the costs of a data breach, whether it's recovery, legal fees, or penalties.
Protecting Your Practice: Why Cybersecurity Insurance is Essential in Today’s RCM Landscape
In today’s digital world, cybersecurity threats are a growing concern for healthcare providers, especially as the healthcare industry becomes more reliant on digital solutions. For small to medium-sized practices, the risks associated with data breaches, cyberattacks, and identity theft are ever-present. Recent incidents, like the 2020 Universal Health Services attack and Ransomware attacks on healthcare providers, have shown just how devastating these breaches can be to a practice’s operations, reputation, and financial stability.
Why Cybersecurity Insurance is a Must-Have
Many small healthcare providers are unaware that cybersecurity insurance is a critical part of their risk management strategy. The reality is that cybersecurity insurance can be costly, especially for smaller practices that may not have the resources of larger organizations.
However, it’s essential to understand that the minimum coverage required for cybersecurity insurance is typically $10 million to $12 million per occurrence. Without this insurance, healthcare providers risk not only losing valuable data but also incurring significant costs in the event of a cyberattack or data breach.
At Everest, we understand the importance of securing our practice and clients. That’s why we’ve made the strategic decision to secure cybersecurity insurance that covers $10 million to $12 million per occurrence, protecting both our practice and the sensitive data of our clients.
The Risks of Operating Without Cybersecurity Insurance
For many smaller billing companies and healthcare providers, cybersecurity insurance is an afterthought. Without this protection, practices are left vulnerable to:
Data breaches that compromise patient confidentiality
Legal and regulatory penalties for non-compliance
Reputational damage that can take years to recover from
If a billing company does not have adequate cybersecurity insurance, it could leave small providers exposed to these risks, creating a vulnerable situation where financial losses and data exposure become a reality.
Everest’s Commitment to Security
At Everest, we are not just committed to improving the efficiency of your RCM processes—we are dedicated to safeguarding your practice from external threats. As part of our hybrid model, we have taken proactive steps to protect ourselves and our clients by utilizing cloud-based solutions, which help us stay secure from cyberattacks. This approach ensures that all of our client data is stored and processed securely, reducing the chances of unauthorized access and potential breaches.
Final thought
Healthcare practices cannot afford to ignore cybersecurity in today’s digital world. Cybersecurity insurance is an investment in the future security and longevity of your practice. Whether you’re working with an outsourced RCM provider or managing billing in-house, it’s critical to ensure that your partner has the right insurance in place to protect you.
At Everest, we have made cybersecurity a top priority by securing the insurance coverage and cloud-based systems that help protect both our clients’ data and our operational integrity. Don’t wait for a cyberattack to strike—take proactive steps to safeguard your practice and avoid the costly consequences of negligence. For questions and queries, please contact our help desk.
