Change Healthcare’s Clearinghouse Services Available Now After the February Ransomware Attack
Change Healthcare has reported the complete restoration of its clearinghouse services after encountering a ransomware attack in February. Change Healthcare’s Payer Print Communication Multi-Channel Distribution System (MCDS), MedRx pharmacy electronic claims for medical service, and Clinical Exchange are now available. However, Change Healthcare is offering only a partial service. Other services are back and completely operational.
Because of the extended systems outage of Change Healthcare, parent organization UnitedHealth Group set up a Temporary Funding Assistance Program to assist companies, including HIPAA-covered entities, having financial difficulties because of the disruption brought on by the ransomware attack and spent about $8.5 billion in loans with that program. The repayment period is ongoing, and about $3.2 billion in loans were paid back by October 15, 2024. Change Healthcare has lost revenues because of the extended outage as healthcare companies looked for alternative companies. Change Healthcare is presently attempting to regain its business.
Pending Acquisition of Amedisys by UnitedHealth Group
At the beginning of November, the Department of Justice and four states including, New Jersey, New York, Maryland, and Illinois, took legal action against UnitedHealth Group to stop its merger with Amedisys, which is a top company offering home health and hospice care in America. UnitedHealth Group is advancing in the home healthcare industry through its subsidiary, Option Care Health, seeking to buy Amedisys for $3.3 billion. Amedisys is one of the biggest home healthcare companies in the U.S. having 500 facilities in 32 states.
The legal action alleges that competition between Amedisys and UnitedHealth Group pushes the two businesses to offer quality patient services and give bigger salaries to nurses. However, if the merger pushes through, UnitedHealth Group will have control of about 30% of the home health and hospice industry in 8 states. The lawsuit claims the merger is anticompetitive and when there is no competition, it might hurt patients, insurance companies who deal with medical services, and the nursing staff who give care to patients.
The merger is being challenged because affordable, high-quality care options may become unavailable to home health and hospice patients and their families having tough times in their lives. The Justice Department won’t be reluctant to evaluate illegal consolidation and monopolization in the healthcare industry that is set out to hurt vulnerable patients, their families, and medical care staff.
UnitedHealth Group replied to the legal challenge stating that the merger between Amedisys and Optum will be pro-competitive and will result in additional development, creating better patient services and better access to good-quality care. The group is a defendant in the DOJ’s interpretation of the antitrust laws. The DOJ attempted to prevent UnitedHealth Group’s purchase of Change Healthcare in 2022 yet failed.