In the wake of the Change Healthcare cyberattack, the American Medical Association is calling on Optum to adopt a more flexible approach to loan repayment for affected physicians.
Here are five things to know:
1. On April 11, AMA CEO and Executive Vice President James Madara, MD, formally addressed Optum Insight CEO Roger Connor in a letter, urging Optum and its parent company, UnitedHealth Group, to let individual practices determine their own repayment timelines. The AMA’s letter comes as a growing number of physicians report that Optum is demanding rapid loan repayments, in some cases within five days, under threat of withheld UnitedHealthcare reimbursements.
2. This approach appears to contradict previous assurances made to Congress by UnitedHealth CEO Andrew Witty, who pledged that repayment would be contingent on providers achieving financial stability.
3. An Optum spokesperson told Becker’s that the company is “actively working with providers to identify flexible repayment plans” and collaborating with UnitedHealthcare to waive timely filing deadlines for impacted plans. Optum also called on the AMA to encourage similar flexibility from all payers and plan sponsors.
4. The February 2024 ransomware attack on Change Healthcare crippled claims processing nationwide, affecting one-third of all U.S. healthcare transactions. It was revealed in congressional testimony that stolen credentials and a lack of multi-factor authentication enabled the breach, which led to massive data exfiltration and a $22 million ransom payment authorized by Mr. Witty.
5. The cyberattack’s financial toll fell disproportionately on independent and smaller practices, many of which struggled to cover payroll, rent and vendor payments, according to the AMA. While Optum issued more than $9 billion in emergency loans and advances, physicians say these funds came with high-pressure repayment terms.
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