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Financially troubled health insurance company launches lending scheme for financially tight medical practitioners

A temporary loan scheme to restore cash flow to healthcare providers affected by the outage was launched on Friday by Change Healthcare, the massive health insurance IT company that had its operations disrupted for days by a cyberattack.

This temporary fix aims to bring some financial respite to healthcare providers, who, according to analysts, are losing millions of dollars every day as a result of the outage. Change Healthcare may take several weeks to resume regular operations, according to certain US officials and professionals in the healthcare industry.

Health care providers with “short-term cash flow needs” will benefit from the temporary loan scheme, according to a statement from Change Healthcare. The business stated, “The funds will simply need to be repaid once standard payment operations resume.”

Senior US officials have put pressure on Change Healthcare to bring its systems back online. Concerned about the extensive financial and health effects of the attack, representatives from the White House and other government agencies, including the Department of Health and Human Services, have pushed for solutions to get Change Healthcare back online,

According to a US insider familiar with the situation, senior US authorities have also been searching for backup plans in case Change Healthcare is unable to collect health care payments in a timely manner,

Change Healthcare, a division of UnitedHealth, is a healthcare giant that handles prescriptions to insurance for tens of thousands of pharmacies around the US.

The hack’s effects have been extensive, affecting several states. A social worker in Michigan told CNN that she spent $1,600 for Paxlovid, the coronavirus-mitigating medication, because the pharmacy was unable to process her insurance. A psychotherapist in Maryland told CNN she was concerned the outage would cause her to lose her company.

The malware has been dubbed “the most serious incident of its kind leveled against a US health care organization” by the president of the American Hospital Association, a body representing the healthcare industry.

According to Carter Groome, the CEO of cybersecurity company First Health Advisory, some healthcare providers are losing over $100 million every day as a result of the outage,

Change Healthcare announced on its website that it was releasing an updated version of its online prescribing service in the wake of the incident on Friday afternoon.

The hack, according to Change Healthcare, was caused by the infamous ransomware gang known as ALPHV, or BlackCat. The Justice Department claims that this group has attacked victims all over the world with ransomware.

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