Graybill Medical Group, a primary care provider based in Escondido, Calif., is terminating its management services agreement with Poway, Calif.-based Palomar Health Medical Group following a cyberattack on Palomar in May, The San Diego Union-Tribune reported Sept. 25.
Graybill notified Palomar of its decision in August, citing "inadequate support and response to the aftermath of the May 2024 cyberattack directed against Palomar Health Medical Group."
The attack compromised Palomar's computer systems, including its EHR.
"The breach, coupled with the failure to fully restore critical functions, has impeded our group’s ability to provide essential medical services to patients," Kelly Boyatt, MD, a Graybill family medicine specialist, said in a statement to the publication.
Graybill claims that key operations remain in limbo, while Palomar insists that all systems have been "fully and safely restored."
In response, Palomar accused Graybill of deflecting responsibility for the incident, noting that "one of Graybill's key leaders also serves as the chief medical information officer of Palomar Health Medical Group."
Additionally, Vanessa Peters, MD, Graybill's chief physician officer, revealed that Palomar sent a memo Sept. 10 informing employees and Graybill providers that they must vacate the premises by Nov. 11 due to the termination.
The split affects seven of Graybill's nine sites.
Palomar Health Medical Group's interim CEO, Russ Riehl, said the group is offering every Graybill physician the opportunity to continue practicing with Palomar, emphasizing that "no doctors have been evicted" and that discussions with some physicians about staying are ongoing.
Dr. Peters disputed this, stating that only six Graybill specialists have engaged with Palomar about remaining.