A pair of cyberattacks, including one on Change Healthcare that has impacted health care companies across the country has led Petersen Health Care, one of the largest operators of nursing homes in the country, to file for bankruptcy protection.
Petersen itself was the victim of a ransomware attack last October and when it did not pay the ransom, the attackers began leaking data that was stolen. Petersen said a substantial number of business records were lost, making it too difficult to bill insurance companies and customers, leading to substantial delays in reimbursement. Then, the Change Healthcare attack hit, and Change Healthcare was a major payor to Petersen Health Care, which pushed Petersen into bankruptcy protection.
The attacks led Petersen Health Care to default on $45 million of loans that were insured by the Department of Housing and Urban Development. The default forced the lenders that originated the loans to place 19 of Petersen Health Care’s locations into receivership, and now the company is trying to meet the demands of the receiver while also try and get its financial house back in order.
Petersen Health Care employs nearly 4,000 workers nationwide and operates 90 nursing homes that take care of 6,800 individuals. The company had $339 million in revenue in 2023, but was carrying debts of $295 million, according to a published report.
The Change Healthcare ransomware attack has caused problems at health care providers nationwide. It was just last week that the company’s electronic payments platform was restored. The company allegedly paid $22 million to unlock its system after it was attacked.
