A Philadelphia hospital is limiting hiring and suspending discretionary spending, citing financial difficulties arising from the Change Healthcare cyberattack, Philadelphia Business Journal reported June 24.
St. Christopher's Hospital for Children outlined the cash-management strategy in a letter to hospital staff viewed by the news outlet. Those measures include limiting labor hiring to direct patient care positions; restricting overtime, agency and contracting staff, and new premium pay increases unless approved by the CFO; halting discretionary spending including travel until January; and limiting supply chain and capital spending to direct patient care, life safety and regulatory requirements.
"We are managing cash in a very focused manner," CFO Edward Bleacher II wrote in the letter. "We anticipate returning to our normal cash-flow status by January."
Mr. Bleacher wrote that the February Change Healthcare ransomware attack, which disrupted claims and payment processing around the country, has led to delays in insurance collections at the hospital, which is jointly owned by West Reading, Pa.-based Tower Health and Philadelphia-based Drexel University.
"Like many hospitals across the country, St. Christopher's has been impacted by the Change Healthcare cyberattack, which has temporarily disrupted our regular insurance collections," the hospital said in a statement to the Business Journal. "To navigate this challenge, we are carefully managing our cash flow to ensure we can continue delivering on our vital community-focused mission. It's important to note that these short-term spending measures will not impact the quality of our care or the safety of our patients."
The hospital also said it is not in a hiring freeze as it is at full employment.
A Change Healthcare spokesperson told Becker's he is not aware of whether the hospital reached out for financial support offered by the company.