Hospitals and clinics in several states, including California, Texas, Connecticut, Rhode Island, and Pennsylvania, are recovering from a cyberattack that disrupted their computer systems, leading to the closure of emergency rooms and diversion of ambulances. Prospect Medical Holdings, the affected healthcare provider, has taken its systems offline and launched an investigation with the help of cybersecurity specialists. The recovery process can take weeks, during which hospitals resort to paper systems. The healthcare industry is a common target for cybercriminals due to the sensitive patient data it holds.
Eastern Connecticut Health Network hospitals, including Manchester Memorial Hospital and Rockville General Hospital, are experiencing systemwide IT complications, leading to the closure of various services and locations. Emergency departments are diverting patients for 2 hours, and other affected areas include urgent care centers, outpatient laboratories, imaging centers, behavioral health services, and primary and specialty care locations. There is currently no information on when the IT systems will be fixed. ECHN team members are contacting patients whose care appointments may be impacted.
Hospital tenants of Medical Properties Trust, including Steward Health Care and Prospect Medical Holdings, have hired financial advisers to refinance credit lines after recent financial struggles. Steward has hired Guggenheim Securities to refinance asset-based loans due at the end of this year, while Prospect Medical is being advised by Houlihan Lokey on a refinancing effort. Medical Properties Trust has faced questions about its exposure to Steward and Prospect after a challenging period for hospitals.
