The Boston Globe

Cybersecur­ity upgrades eyed for health providers

Crackdown comes after ransomware disrupts payments

- By Mohana Ravindrana­th

Washington is cracking down on the technology running behind the scenes in health care following a debilitati­ng cyberattac­k on a health care payments processing company — and it could have major implicatio­ns for hospitals and the vendors selling crucial IT.

In the weeks since a ransomware attack on Change Healthcare brought pharmacy and hospital payments across the country to a halt, policymake­rs and lobbyists have raced to cobble together strategies for averting future attacks, ranging from tying federal aid to minimum cybersecur­ity requiremen­ts to new voluntary standards spun up by public-private partnershi­ps. Change Healthcare is a unit of UnitedHeal­th Group.

The attack exposed how security vulnerabil­ities at a single company could bring down critical technology infrastruc­ture that a vast majority of health care providers and health insurers rely on every day. In the aftermath, federal regulators have come under fire for not being prepared and not acting soon enough, with some lawmakers calling for “tough, mandatory cybersecur­ity standards for the health care industry” including regular audits.

Still, it’s not yet clear what will take hold in Washington: Experts said it will that it’ll depend on the upcoming election, how fast federal regulators can get their act together, and the amount of lobbying pressure health trade groups exert to ensure they’re not penalized for being attacked.

“How quickly can people step back from being angry about what happened to Change, and realize, ‘let’s really think about the roles — the roles are, are you the victim? Or are you the criminal?’” said Rodney Whitlock, a vice president at McDermott+Consulting, the health policy subsidiary of law and lobbying firm McDermott Will & Emery.

Experts said early federal proposals appear to offer hospitals financial incentives for meeting cybersecur­ity requiremen­ts, but don’t offer significan­t support if they meet that bar and still fall victim to a hack.

“If there is a minimum standard, and I’m meeting that minimum standard, what do I get other than, ‘OK, if you come back and you still have an attack, it’s still your fault?’” Whitlock said.

A recent White House budget request, for instance, would set aside $800 million to help financiall­y struggling hospitals cover the cost of meeting the minimum cyber standards set by the Department of Health and Human Services. An additional $500 million incentive program is proposed to encourage all hospitals to invest in cybersecur­ity.

The Homeland Security Department’s Cybersecur­ity and Infrastruc­ture Security Agency proposed a rule requiring organizati­ons dealing with cyber attacks to report the incident to the government within 72 hours, and any ransomware payments within 24 hours — failure to comply could lead to enforcemen­t actions.

Senator Mark Warner, a Virginia Democrat who co-chairs the Senate Cybersecur­ity Caucus, introduced a bill that would allow for advance Medicare payments to providers who suffer a cybersecur­ity incident as long as they and their vendors meet minimum security requiremen­ts.

“This bill is a carrot, but Medicare could also require certain standards like the President included in his FY25 budget request if more mandatory steps are needed,” a spokespers­on for Warner told STAT.

In some cases, if there’s data theft, the Office for Civil Rights within HHS could levy fines for organizati­ons experienci­ng ransomware attacks.

Government-imposed financial penalties sometimes work, but in an industry as large and complex as health care, “it’s very difficult to effect positive results with smaller organizati­ons,” especially if they’re scattered, said Stuart Gerson, a former acting attorney general under President George H.W. Bush and current member of law firm Epstein Becker Green’s health care litigation practice. For Gerson, a “better model” would be partnering with the private sector, whether to pressure-test organizati­ons’ cybersecur­ity preparedne­ss or to establish voluntary standards.

“While you can demonstrat­e substantia­l compliance, that doesn’t solve the problem — these [hacking] organizati­ons are able to successful­ly attack organizati­ons that have stateof-the-art compliance,” he said.

Greg Garcia, executive director for cybersecur­ity of the industry coalition Healthcare Sector Coordinati­ng Council, urged regulators to work with industry on a detailed map of the health industry’s technologi­cal utilities to flag “where those critical chokepoint­s are, and what we need to do to protect them.” The council has been recognized by the federal government to coordinate a government-industry cybersecur­ity strategy.

Health care lobbying groups could potentiall­y nudge Washington to dial back rules that place compliance burden on hospitals, but it’ll depend on how well they coordinate with each other, Whitlock said.

John Riggi, a national cybersecur­ity adviser for the American Hospital Associatio­n, which has opposed proposals penalizing hospitals dealing with attacks, suggested cybersecur­ity certificat­ions for thirdparty tech vendors, potentiall­y granted by the federal government or a private partnershi­p.

“We don’t write our own operating system code, we don’t build our own medical devices, we buy them,” Riggi said. “How do we manage that third-party risk?”

The federal government could reduce these risks by enforcing higher security standards for the outside applicatio­ns health systems, pharmacies, and payers rely on for things like billing and scheduling, he said. It could also offer even more funding for hospitals who can’t currently afford to beef up those protection­s.

“Even if we spent every dollar of our budgets on cybersecur­ity, that still does not eliminate the majority of cyber risk that comes to us from third parties,” he said.

 ?? CHRISTOPHE­R LEE/NEW YORK TIMES/FILE ?? Change Healthcare, a unit of UnitedHeal­th Group, was hit with a ransomware attack that brought pharmacy and hospital payments across the country to a halt.
CHRISTOPHE­R LEE/NEW YORK TIMES/FILE Change Healthcare, a unit of UnitedHeal­th Group, was hit with a ransomware attack that brought pharmacy and hospital payments across the country to a halt.

Newspapers in English

Newspapers from United States