Change Healthcare Part 3: OH, CRAP!! WE’RE IN A HEAP OF TROUBLE!!!
In my last post, I said something like: No one is talking about it right now. But, soon, everyone will be talking about it!
Medical providers and administrators don’t know a lot of the details in how their offices and hospitals get paid. In fact, prior to two weeks ago, most hospital CEO’s probably thought Change Healthcare was a motto for a lobbying group.
In fact, Change Healthcare is owned by Optum and United Healthcare. It is huge and interacts with most other insurance companies. When you remove Change Healthcare, 2/3rds or more of practices, pharmacies, hospitals and medical equipment suppliers cease to get any money. Up until now, a majority of you have been coasting on billing charges processed prior to February 21, 2024.
In about ten days, the spigot of money runs dry. Hospitals can get a quick line of credit. But…Medical offices? That’s going to be tough.
Optum and United Health are being generous with rescue offers….NOT! They are offering practice loans which calculate out to $15 per week per doctor. That’s it! The number is so comical, my laughing stops me from crying. So… Don’t waste your time!
On Tuesday, March 5, the government suddenly realized a very bad thing was coming. So, the Centers of Medicaid and Medicare Services announced they were relaxing a number of regulations. The listing is on their website, but it doesn’t look like anything that is going to help the medical community.
Various media reports claim United Health paid $22 million to the hackers Monday night. I’m not a terrorist or a ransomware creator, but that number sounds low to me, given the magnitude of the destruction. It sounds to me like the Hackers are using a “Subscription Model” for ransom payment: “You pay us $22 million per month forever and know we can turn off your system anytime you try to get smart!”
By the way, owners United Healthcare and Optum are safe. I know you were worried about them….
Great shot from “The Day After”, 1983.