Hospitals Aren't Immune from Cyberattacks
In 2021, 45 million people were affected by healthcare cyberattacks, triple the 14 million affected in 2018.
Starting today, May 1, banks in the U.S. will be required to notify their primary federal regulator of a cybersecurity incident within 36 hours, which will more than likely be a challenge for some institutions. The “why” behind that is explained by a 2022 report by cloud computing company VMware that found 63% of financial institutions experienced an increase in cyber-attacks in the past year, a 17% increase compared to the prior one.
While banks are a treasure trove of sensitive information, so too are hospitals making them a rapidly growing target for bad actors. As hospitals of all shapes and sizes, cities and rural towns as well as public hospitals companies ranging from Tenet Healthcare (THC), HCA Healthcare (HCA), Universal Health Services (UHS), and Community Health Systems (CYH) look to shore up their cyber defenses, we have another reason to think current cybersecurity spending forecasts will once again surprise to the upside.
As one can likely understand, this keeps us rather bullish on our Cybersecurity & Data Privacy investment theme, models, and indices here at Tematica Research and the corresponding ETF from our partners at RizeETF.
Cyber Security & Data Privacy
Securing individuals and organizations against cyber threats and privacy violations:
The GHT Coeur Grand Est. Hospitals and Health Care group has disconnected all incoming and outgoing Internet connections after discovering they suffered a cyberattack that resulted in the theft of sensitive administrative and patient data…GHT is a hospital network located in Northeast France consisting of nine locations, 6,000 employees, and approximately 3,370 beds.
French hospital group disconnects Internet after hackers steal data
According to WPTV, a local news outlet in Florida, telephone service and some IT systems at at least two Tenet hospitals in the West Palm Beach area went offline starting last Wednesday. The station reported doctors and nurses using paper charts and having to leave the hospitals to use their phones because they weren’t functional inside… Tenet, which operates 60 hospitals and roughly 550 other care sites across 34 states, is the latest health system to be affected by a cybersecurity breach, which have been increasing in severity in the U.S. and in the healthcare industry… Cybersecurity breaches in the sector hit a record high last year, compromising a record volume of patient data, according to cybersecurity firm Critical Insights. In 2021, 45 million people were affected by healthcare cyberattacks, triple the 14 million affected in 2018, according to the firm’s recent analysis of HHS breach data.
Tenet says ‘cybersecurity incident’ disrupted hospital operations
At 12:08 p.m. on a Monday, a Sky Lakes Medical Center employee tapped an email link. Within minutes, that click cracked open the Oregon hospital’s digital infrastructure for cybercriminals to infiltrate. By the time IT staff started looking into it, “everything was being encrypted,” said John Gaede, director of information services. On a note discovered in a server, the attackers announced the 100-bed Klamath Falls hospital had been hit with ransomware.
At small and rural hospitals, ransomware attacks are causing unprecedented crises
“On February 24, 2022, ARcare experienced a data security incident that impacted its computer systems and caused a temporary disruption to services,” reads a data breach alert published by ARcare, which provides discounted medical care in underserved communities via medical centers, pharmacies, and school-based clinics….Potentially exposed data, which varied by individual, included “names, Social Security numbers, drivers’ license or state identification numbers, dates of birth, financial account information, medical treatment information, prescription information, medical diagnosis or condition information, and health insurance information”.
Data breach at US healthcare provider ARcare impacts 345,000 individuals
A historic jump in the number and severity of cyber assaults on hospitals during the last 18 months will cause "material revenue and expense pressures" on nonprofit hospitals and health systems, according to a report from Fitch Ratings. The sector is viewed as a target-rich environment due to the large amount of sensitive data that healthcare entities maintain for patient care and operations.
Relentless cyberattacks are putting financial pressure on hospitals: Fitch Ratings