Law firm BakerHostetler discovered that healthcare did not only have the greatest increase in data breach-related litigation rates, but also accounted for most breach-related lawsuits
last year, according to Healthcare Finance News.
Healthcare also had more than $8.3 million in initial ransom demands and nearly $876,000 in average paid ransoms, both of which are the highest across all industries, the report revealed. However, the healthcare industry
was found to be the second-fastest in restoring cyberattack-hit systems, only after the energy and technology sector.
The report also detailed the blanket denials given by the Centers for Medicare and Medicaid Services for health providers' Extraordinary Circumstances Exceptions requests for extended filing due to ransomware attacks beginning last year.
"These denials could result in a significant loss of Medicare reimbursement to healthcare providers that are already reeling from the toll the COVID-19 pandemic has taken on their finances. This new trend emphasizes the need for healthcare providers to quickly identify important, upcoming regulatory filing deadlines if there is a concern that a data security incident will prevent them from accessing the required information for the filing," said the report.