Nursing Home Declares Bankruptcy, Claims Recent Cyberattacks Contributed

Nursing Home Declares Bankruptcy, Claims Recent Cyberattacks Contributed

Data Breach Today reports:

A Midwest operator of nursing homes has filed for bankruptcy, citing the effects of a ransomware attack last fall and fallout from the recent Change Healthcare outage as factors that contributed to its financial woes.

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SC Healthcare Holdings LLC, which operates as Peoria, Illinois-based Petersen Health Care, in federal court filings on Wednesday said it is seeking Chapter 11 bankruptcy protection because of ongoing financial problems stemming from an October ransomware attack and disruptions in payments from payers caused by the recent cyberattack on Change Healthcare, plus a host of other challenges.

The other issues include lingering effects of the COVID-19 pandemic, difficulty in recruiting staff, and inflationary pressures on food, drug and medical supply costs.

Read more at Data Breach Today.