Watertown, N.Y.-based Samaritan Medical Center encountered a data breach more than a year ago. Now, the hospital is still facing financial repercussions as its credit rating drops, according to an Aug. 4 Bloomberg Law report.
Four notes:
- A malware attack in July 2020 took the hospital's computer system offline and forced it to revert to paper records. Some patients whose procedures were not urgent were rescheduled.
- A year later, the New York hospital had its credit rating "cut to junk," in a rare downgrade tied to cyberattacks, according to the report.
- S&P Global Ratings dropped the hospital's rating on municipal bonds by two notches, to "BB" or non-investment grade. According to the S&P, the cyberattack exaggerated pre-existing financial strain.
- Even with federal aid extended amid the pandemic, the hospital's financial status continued to worsen, the report said. The malware attack delayed its cash collection and triggered a drop in reserves. The result was the credit rating two notches below investment grade.