- June 28, 2024
- Posted by: Thomas Anderson
- Categories:
The recent Change Healthcare/Optum Payment Disruption refers to a significant cyber attack in February that disrupted the electronic data interchange services of Change Healthcare. This attack affected numerous Medicare providers and suppliers, causing severe cash flow disruptions. Hospitals, physicians, pharmacists, and other healthcare entities faced challenges in maintaining their operations and delivering essential patient care due to the sudden financial strain.
In response, the Centers for Medicare & Medicaid Services (CMS) initiated the CHOPD payments to help mitigate the financial impact on hospitals, physicians, pharmacists, and other healthcare entities, ensuring they could continue providing essential care to patients during this unprecedented disruption.
The primary objective of the Centers for Medicare & Medicaid Services (CMS) regarding the Change Healthcare/Optum Payment Disruption (CHOPD) was to swiftly provide financial support to Medicare providers and suppliers impacted by the cyberattack on Change Healthcare’s electronic data interchange services
Furthermore, CMS’s efforts underscored the importance of maintaining robust cybersecurity measures across the healthcare industry. By addressing the immediate financial needs and promoting long-term resilience, CMS aimed to minimize the impact of the cyberattack and safeguard the delivery of healthcare services to Medicare beneficiaries. This proactive approach highlighted CMS’s commitment to supporting the healthcare community in times of crisis and ensuring the continuous provision of vital medical care.
CHOPD is set to conclude on July 12, 2024. This program was launched to address the significant financial disruptions experienced by Medicare providers and suppliers, including hospitals, physicians, and pharmacists, due to the cyber incident earlier. The scheduled conclusion of CHOPD marks CMS’s proactive efforts to stabilize the financial situation of healthcare entities and ensure the continuity of essential patient care services during this challenging period.
CMS Administrator Chiquita Brooks-LaSure highlighted the significance of the CHOPD (Change Healthcare/Optum Payment Disruption) program in the context of the cyberattack on Change Healthcare’s systems. She emphasized that the program was essential in swiftly providing financial support to Medicare providers and suppliers affected by the disruption. Brooks-LaSure acknowledged the critical role of CHOPD in mitigating cash flow disruptions for healthcare entities, ensuring they could continue delivering essential patient care without interruption. Her statements underscored CMS’s commitment to supporting the healthcare community during challenging times and maintaining the stability of healthcare services amidst cybersecurity threats.
“In response to one of the most widespread cyberattacks on the U.S. healthcare industry, CMS quickly acted to ensure providers and suppliers had access to the funds needed to continue delivering essential
care,” said CMS Administrator Chiquita Brooks-LaSure. “Our efforts helped minimize the disruption from this incident, and we will stay vigilant to address any future events.”
More than 4,200 Part A providers have received CHOPD accelerated payments, totaling over $2.55 billion. Additionally, CMS issued 4,722 CHOPD advance payments to Part B suppliers, amounting to more than $717.18 million.
CMS will keep monitoring the impact of the cyberattack on Medicare providers and will work with industry partners to resolve any remaining issues or concerns. CMS urges all healthcare service providers, suppliers, technology vendors, and other stakeholders to prioritize cybersecurity immediately. For more information on how to stay protected, please visit the HPH Cyber Performance Goals website at https://hphcyber.hhs.gov/performance-goals.html.