Health
Cyberattack on UnitedHealth Leaves Medical Providers in Debt
Two independent medical practices in Minnesota once hoped to expand operations but have spent the past year struggling to recover from the cyberattack on a vast UnitedHealth Group payment system.
Odom Health & Wellness, a sports medicine and rehabilitation outfit, and the Dillman Clinic & Lab, a family medicine practice, are among the thousands of medical offices that experienced sudden financial turmoil last year. The cyberattack against Change Healthcare, a division of United, paralyzed much of the nation’s health-care payment system for months.
Change lent billions of dollars to medical practices that were short on cash but has begun demanding repayments.
Dillman and Odom are suing United in U.S. District Court in Minneapolis, accusing the corporation of negligence related to the cyberattack and claiming they sustained excessive expenses because of the attack’s fallout.
In addition, Odom and Dillman asserted in court filings that the company’s insurance arm, UnitedHealthcare, has in turn been denying claims to cover patient care for being submitted late.
Lawmakers viewed the chaos caused by the cyberattack as a result of United’s seemingly insatiable desire to buy up companies like Change, alongside doctors’ practices and pharmacy businesses. The widespread disruption was a reminder of how deeply United’s sprawling subsidiaries had become embedded in the nation’s health care system.
“This is yet another sign that the rapid consolidation of major health care companies has harmed, rather than helped, American patients and doctors,” Senator Ron Wyden, Democrat of Oregon, said of the financial bind that the cyberattack had placed on practices.
Last month, the American Medical Association sent a letter to Optum, the UnitedHealth division that owns Change, saying that it was concerned that many practices were being pressured to repay loans despite continued financial difficulties from the cyberattack.
Since March 2024, Change had provided $9 billion in interest-free loans to more than 10,000 medical providers, including $569,680 to Odom and $157,600 to Dillman.
A year later, roughly $5.5 billion had been repaid, United said in court filings. About 3,500 practices, including Odom, Dillman and six other plaintiffs in the lawsuits, had made no repayments as of April 1. Several other practices and patients have also filed suits against United.
In a statement, Change said it would “continue to actively work with providers to identify flexible repayment plans based on the individual circumstances of providers and their practices.”
It added, “We have also worked with UnitedHealthcare to ensure the claims it receives are reviewed in light of the challenges providers experienced, including waiving timely filing requirements for the plans under its control.”
Change compared its efforts to recoup loans to those by the Centers for Medicare and Medicaid Services. After the cyberattack, C.M.S. provided accelerated payments to practices to cover Medicare billings delayed by the cyberattack. It has since garnished Medicare claims to recoup the funds.
In court filings, United cited data showing that only a small percentage of Odom’s and Dillman’s health care claims were rejected for being “untimely,” although those denials increased after the cyberattack.
Calling the plaintiffs’ motions a “collective shakedown,” UnitedHealth has also requested that the district court reject their request for an injunction against repayment of loans, arguing that they did not have the right to interfere in its business with thousands of other loan recipients.
An injunction, United argued, could be used by other medical practices to “hold hostage billions of dollars.”
Dr. Megan Dillman, who specializes in pediatrics and internal medicine, said she had opened her Lakeville, Minn., practice in 2022 to “bring the joy back to medicine.” She said she spent far more time with patients than the spartan 15 minutes that corporate health care operations have increasingly required of their doctors.
“I have some patients where I don’t think they would be here today if we didn’t exist,” Dr. Dillman said, citing cancers she had detected that had been missed by more hurried doctors.
Her husband, Richard Dillman, runs the business side of the practice. He called United’s repayment demands “a kick in the teeth.”
“I’d rather go through the Special Forces qualification course back to back — to back to back — than ever do this again,” said Mr. Dillman, a former Green Beret.
At the time of the cyberattack, Change’s medical-billing clearinghouse processed about 45 percent of the nation’s health care transactions, or about $2 trillion annually. The company had to take its services offline in February 2024 to contain damage from the attack, halting much of the health care system’s cash flow and unleashing chaos.
The associated breach of private information was the largest reported in U.S. health-care history. In January, United increased the reported number of people whose personal data had been exposed to 190 million from 100 million.
The U.S. Department of Health and Human Services’s Office of Civil Rights opened an investigation into the ransomware attack in March 2024. An agency spokesperson stated that it “does not generally comment on current or open investigations.” Some health care companies have been fined for breaches involving patient data.
Company officials have said that the hackers infiltrated Change’s systems by obtaining compromised login credentials and using a portal for entry that did not require multifactor authentication.
United officials confirmed that the company had paid a $22 million ransom to the Russian cybercriminals who claimed responsibility. The corporation reported in a January earnings report that the cyberattack had by then cost $3.1 billion.
Health care reimbursements didn’t begin to channel relatively freely through Change until June 2024, although United said that some of its systems had taken longer to come back online and that a few were still not at 100 percent.
At congressional hearings in May 2024, senators slammed Andrew Witty, United’s chief executive, for how the company had handled the cyberattack and the disruption it caused thousands of providers. Mr. Witty testified that the company had “no intention of asking for repayment until providers determine their business is back to normal.”
The loan terms stipulated that Change would not demand repayment until “after claims processing and/or payment processing services and payments impacted during the service disruption period are being processed.”
The meaning of “being processed” is now at the center of the court cases.
Change began seeking repayment from Dillman and Odom through what the medical practices characterized in court filings as a succession of increasingly aggressive letters. Both practices told Change they were unable to repay and neither accepted repayment plan offers. Change then in January demanded full repayment and threatened to withhold future reimbursements for patients’ health care.
“It’s disappointing but not surprising that UnitedHealth Group has decided to prioritize its bottom line over the well-being of families and small businesses,” said Mr. Wyden, who led the Senate hearing on the cyberattack.
The A.M.A. called upon the company to negotiate “an individualized, realistic repayment plan” with each practice.
Dr. Catherine Mazzola, who runs a pediatric neurology and neurosurgery practice in New Jersey, is among many others who have also battled with United over the loans.
“Optum, in my opinion, is acting like a loan shark trying to rapidly collect,” Dr. Mazzola, who is not a plaintiff in the lawsuits against United, said of the division that owns Change.
Dr. Mazzola received a $535,000 loan, and she said she had later told Change she could not repay it. She proposed a schedule but received no response. So she began paying $10,000 a month in January. But without any warning, she said, United began garnishing her reimbursements.
A United spokesman disputed her account, saying demand for full repayment would not occur without warning but after months of efforts to negotiate a plan.
Today, Dr. Odom employs about 110 people, many of whom provide rehab to older people in assisted-living facilities. If his practice had to repay the Change loan immediately, his lawsuit asserted, he would have to lay off at least 22 staff members. Dr. Odom said that could prompt assisted-living chains to drop his services and cause more financial harm.
“We face an uphill battle as such a small company,” said Dr. Meghan Klein, Odom’s president. Speaking to the gulf between her company’s finances and United’s, she said: “What is little impact to them is huge impact to us. These are a lot of people’s lives that we’re worried about.”
The Dillman Clinic, which derives about one-quarter of its income from United insurance reimbursements, would face bankruptcy if forced to fully repay its loan, according to its lawsuit.
Having leveraged their house, their cars and their retirement accounts against their practice, the Dillmans would lose all of their assets to bankruptcy, including their home, they said.
“Part of the goal of being here is to have control over my schedule,” Dr. Dillman said. But the cyberattack-driven chaos has consumed the couple’s time, leaving little for their 6-year-old daughter.
“There are days I see her for an hour,” Dr. Dillman said. “I’m missing her childhood.”
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Washington, DC – Medical victim Chloe Cole was at the center of the U.S. Department of Health and Human Services’ Thursday announcement of proposed regulatory actions to end “sex-rejecting procedures” on minors.
The proposed regulatory actions by the HHS are part of President Donald Trump‘s January executive order calling on the department to protect children from “chemical and surgical mutilation.”
The department is rolling out a series of policy updates and regulatory actions that would effectively defund hospitals that provide gender transition procedures, according to an HHS official.
NUMBER OF YOUNG ADULTS IDENTIFYING AS TRANSGENDER PLUNGES BY NEARLY HALF IN TWO YEARS
Cole, now 21 years old, went through the process of medical transition from female to male between the ages of 12 and 16.
The California native took to the stage alongside HHS Secretary Robert F. Kennedy Jr. and other officials Thursday to advocate for the protection of children. Afterward, she told Fox News Digital the puberty blockers, testosterone injections and double mastectomy she endured have irreversibly and permanently affected her health.
Detransitioner Chloe Cole joined HHS Secretary Robert F. Kennedy Jr. on Thursday as he announced proposed regulations ending gender treatments for children. (Fox News Digital)
“As soon as gender was in the picture, none of my doctors or psychologists asked the real questions that they should have,” said Cole. “The entire focus was on my feelings and what I wanted rather than what I really needed in that moment.”
What she needed, Cole said, was to be loved and affirmed for the way God created her — “as a young and yet tomboyish little girl.”
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She maintained that her doctors neglected to share risks, only touting the “benefits” of stopping female puberty and using testosterone to promote body hair growth, musculature and different fat distribution.
“There was nothing they could say to me that would make me understand the gravity of what I was about to go through, because I was still growing up,” said Cole. “I had very little experience in the world, and I simply would not be mature enough to be equipped to undergo such a life-changing procedure in every way.”
“I had very little experience in the world, and I simply would not be mature enough to be equipped to undergo such a life-changing procedure in every way,” Cole, pictured above in both pictures, told Fox News Digital. (Chloe Cole; Fox News Digital)
Cole noted that her parents never thought she was transgender, but felt like the odds were stacked against them.
“At the time when we started going through this as a family, there really were no resources that would speak to the reality of transgenderism, especially for children,” she said. “Most people were not aware then that this was something that was even happening in our hospital systems.”
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Cole said her parents were warned that if they did not allow her to transition, she would likely commit suicide.
“My legal guardians were forced to make this decision under duress,” she shared in a previous statement. “But even if my parents had supported transitioning medically from the start, no parent or any adult, ultimately, has a right to determine whether a child gets to be chemically sterilized or mutilated.”
“While there are only two sexes, there’s a million different ways that you can be yourself,” said Cole, pictured above during her surgeries. (Chloe Cole)
Cole said she’s suffered numerous complications from her medications and surgery. “My quality of life is still being impacted to this day,” she wrote in her statement.
Her fertility status now remains unknown, she said. She will not be able to breastfeed because her breasts were surgically removed.
“As an adult, I am now grieving, and on top of that, the areolar skin grafts they used in my surgery began to fail two years afterward. I must wear bandages on my chest every day,” Cole wrote.
“As an adult, I am now grieving.”
In 2023, Cole filed a lawsuit with the Center for American Liberty (CAL) against hospitals for pushing her into what she believes is medical mutilation.
Mark Trammell of CAL told Fox News Digital that Thursday’s HHS announcement “represents a critical acknowledgment that experimental medical interventions on children with gender distress have failed to meet basic standards of safety and effectiveness.”
Cole, who detransitioned after medical procedures, is warning others to wait and seek family support before transitioning. (Fox News Digital)
“It signals that medicine must return to its core ethical obligation: First, do no harm,” Trammell added.
“We will continue fighting to ensure accountability for the institutions that promoted these practices and to secure justice for the children and detransitioners whose lives were forever altered.”
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In a previous statement provided to Fox News Digital, Dr. Marc Siegel, Fox News senior medical analyst, said he is in favor of a “more conservative approach” for minors.
“Long-term effects of puberty blockers may include bone loss, trouble concentrating, interference with learning and interference with fertility,” he said. “I think it makes sense in most cases to treat underlying mental health concerns before jumping into treatments, including surgery, that may be difficult to reverse.”
“It makes sense in most cases to treat underlying mental health concerns before jumping into treatments.”
The doctor also emphasized that gender issues should not be overly politicized. “This means not superimposing an ideology or pushing physicians to act in a certain way or under pressure,” Siegel said.
Cole began the gender transition process at age 12 and received a double mastectomy surgery at 15 years old. (Fox News Digital)
“The welfare of the child must come first. In this case, it means going very slowly and providing support to a child or teen with gender dysphoria.”
Cole shared that she hopes any children who are questioning whether they should transition wait.
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“While there are only two sexes, there are a million different ways that you can be yourself,” she added.
“God is there for you. He is the one who has created you this way, and you can seek his counsel,” Cole went on.
“You can continue praying, and I think ultimately it’s connecting with your family, building your purpose in this world, and looking to the gospel and up to God.”
Fox News Digital’s Emma Colton contributed reporting.
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Those at risk of type 2 diabetes may be able to prevent heart problems later.
A new study published in The Lancet Diabetes & Endocrinology discovered that lowering the blood sugar of those with prediabetes could reduce the risk of heart attack by half.
Diabetes researchers and endocrine experts across Europe, China and the U.S. investigated how bringing blood sugar back to normal levels affected the chances of heart problems later in life, based on a 20-year American study and a 30-year Chinese study, according to a press release.
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In both studies, the prediabetic participants were coached to make appropriate lifestyle changes to lower blood sugar (the amount of glucose in the bloodstream) through diet and exercise, also targeting weight loss.
Participants worked to lower blood sugar through diet and exercise targeted at weight loss. (iStock)
The researchers split the participants into a remission group (where blood sugar returned to normal) and a non-remission group, which included those still in the prediabetes range. They then determined who in these groups had died from heart disease or were hospitalized for heart failure.
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Participants who went into remission had a 58% lower risk of dying from heart disease and being hospitalized for heart failure. This group also had a lower risk of other major heart events and lower overall death rates.
These heart-protective benefits lasted for decades after the program ended, the researchers found.
Those in prediabetes remission had their risk of a heart event reduced by more than half. (iStock)
“Reaching prediabetes remission is linked to a decades-long benefit, halving the risk of cardiovascular death or hospitalization for heart failure in diverse populations,” the researchers commented in the publication of the study. “Targeting remission might represent a new approach to cardiovascular prevention.”
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In an interview with Fox News Digital, Dr. Andreas Birkenfeld, study co-author and professor of medicine at the University Hospital Tübingen in Germany, reiterated that reaching prediabetes remission is not only relevant for reducing the progression of type 2 diabetes, but may also be associated with a “meaningful reduction in… heart attack risk, cardiac death and heart failure.”
“Importantly, this underscores that prediabetes is a modifiable stage where timely, evidence-based interventions (especially lifestyle measures, and in selected cases, medication) can make a real difference,” he added.
“Reaching prediabetes remission is linked to a decades-long benefit, halving the risk of cardiovascular death or hospitalization for heart failure in diverse populations,” the researchers commented. (iStock)
The study did have some limitations, including that it is based on analysis of trials not originally designed to measure cardiovascular outcomes, which means the results show association but cannot prove causation.
In addition, unmeasured lifestyle and health factors, population differences and lack of randomization for heart outcomes may have influenced the reduced cardiovascular risk, the researchers acknowledged.
“This underscores that prediabetes is a modifiable stage where timely, evidence-based interventions … can make a real difference.”
Birkenfeld suggested that those with prediabetes should ask their doctors the following questions: “What is my current status? What is my personal cardiovascular risk? What is my target blood glucose level?”
Patients should also inquire about the frequency of testing for blood sugar and key risk factors like blood pressure, cholesterol and other related conditions, such as kidney function or sleep apnea, he advised.
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“If lifestyle changes aren’t enough or my risk is high, would medication be appropriate for me — and what are the benefits and downsides?” the researcher asked as an example.
About 98 million American adults, more than one in three, have prediabetes, according to CDC data. Eight in 10 of these adults are unaware that they have the disease.
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