What's Going With UnitedHealth Stock On Friday?

Healthcare providers nationwide are grappling with financial challenges as a week-long ransomware outage at a UnitedHealth Group Inc’s UNH tech unit disrupts payment processing. 

The American Hospital Association (AHA) reports that small and large providers are facing cash shortages, with some forced to absorb upfront costs due to their inability to collect payments.

According to a report on Tuesday, Hackers affiliated with the ‘Blackcat’ ransomware gang were responsible for the ongoing outage at UnitedHealth’s technology unit, causing significant disruptions to prescription deliveries for the past six days.

Last week, the health insurance and services company identified a suspected nation-state-associated cyber security threat actor that had gained access to some of the Change Healthcare information technology systems.

UnitedHealth Group has owned Change since it merged with healthcare services company Optum in 2022. 

The hack has left large hospital chains and smaller businesses unable to process claims, causing severe financial strain. 

Six small businesses, including five therapists and a laboratory, revealed that they are accumulating thousands of dollars in overdue payments.

Phil Seubring, legal director at Forensic Fluids in Kalamazoo, Michigan, emphasized the severity of the situation, stating, “We are 100 percent down when it comes to billing right now.” 

Similarly, Jenna Wolfson, a clinical social worker in Felton, California, expressed concern over the potential catastrophe for small mental health practitioners, with approximately $4,000 in claims in limbo.

The impact may initially affect smaller offices more severely, Reuters noted. John Riggi, AHA cybersecurity adviser and former FBI cyber division section chief, warns that providers of all sizes will feel the strain if the outage persists. 

Riggi notes that larger hospitals with alternate technologies and sufficient reserves might weather the storm better initially.

The timeline for resolution remains uncertain, as high-impact ransomware attacks, like the one on UnitedHealth, can take up to 30 days to restore core services and even longer for less critical functions. 

Hospitals await potential workarounds from Change Healthcare, with concerns about the ability of other clearinghouses to handle additional claims traffic.

Price Action: UNH shares are down 0.03% at $493.45 during the premarket session on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.