Hospitals say cyberattacks are complicating their operations and hurting profits, adding to pressure on a $1.2 trillion sector that is under heavy strain from the coronavirus pandemic.
Universal Health Services Inc. said a malware attack in late September cost the hospital chain $67 million last year before taxes. Revenue dropped as patients went elsewhere for care, Universal Health said, and it incurred expenses to restore its operating systems.
The attack on Universal Health and those at other hospitals last year involved ransomware, people familiar with the incident said, a malicious software that shuts users out of their own data. Hackers then demand payment to unlock it.
A Universal Health spokeswoman said the company didn’t pay a ransom. Universal Health, based in King of Prussia, Pa., said that it believed the company would be entitled to recoup costs through insurance. The company said in its earnings report that it has found no evidence of any data breach.
Shares in Universal Health fell 4.2% Friday to $129.28.
