{"id":11659,"date":"2021-12-02T06:08:00","date_gmt":"2021-12-02T12:08:00","guid":{"rendered":"https:\/\/www.shieldagency.com\/blog\/?p=11659"},"modified":"2025-02-14T14:02:31","modified_gmt":"2025-02-14T20:02:31","slug":"3-ways-ransomware-attacks-can-amplify-liability-risk-for-healthcare-systems","status":"publish","type":"post","link":"https:\/\/www.shieldagency.com\/blog\/3-ways-ransomware-attacks-can-amplify-liability-risk-for-healthcare-systems\/","title":{"rendered":"3 ways ransomware attacks can amplify liability risk for healthcare systems"},"content":{"rendered":"\n

Liberty Mutual Insurance<\/a> > Business Insurance<\/a> > Insights<\/a> > 3 ways ransomware attacks can amplify liability risk for healthcare systems<\/p>\n\n\n\n

In 2020, more than a third<\/a> of healthcare organizations in America experienced a ransomware attack. These events often fly under the radar, but that doesn\u2019t make them any less devastating than incidents that make headlines, like the recent attack on the Colonial Pipeline. According to a study by Sophos, the average ransomware attack on a healthcare organization costs more than  $1 million<\/a> \u2014 but ransomware attacks have more than just a financial impact.<\/p>\n\n\n\n

\u201cHospitals, medical facilities, and their physicians have sensitive patient information on their systems,\u201d says Monica DiCesare, chief underwriting officer at IronHealth\u00ae<\/sup>, a division of Ironshore. \u201cThat information is critical to protect, because it\u2019s critical to ensure patient safety.\u201d A cyberattack could put patient lives at risk and open the hospital to even more costly medical malpractice and liability claims. Here are three interconnected risks that healthcare organizations might face in the wake of a ransomware attack \u2014 and how they can help mitigate their exposure. <\/p>\n\n\n\n

1. Encrypted data and medical malpractice suits <\/h3>\n\n\n\n

Doctors and nurses rely on technology to do their jobs \u2014 so when those systems go down, hospitals are at an increased risk of medical malpractice suits. \u201cWe\u2019ve become so reliant on technology. When we don\u2019t have that technology and data, we become inhibited. The physician can\u2019t practice medicine to its fullest, which can later be construed as negligence, because they weren\u2019t able to provide adequate or appropriate care,\u201d says Dennis Cook, president of IronHealth. <\/p>\n\n\n\n

Lack of access to patient data is a major problem for healthcare providers. When bad actors encrypt critical patient data, like drug allergies or prescription information, healthcare workers are more likely to make a mistake that may harm a patient. Delayed lab reports and other critical information may cause hold-ups in treatment, which can have dangerous consequences. On top of that, ransomware attacks can also lock intake systems. That means that ambulances carrying patients in critical condition may be rerouted to facilities miles away \u2014 costing precious time that many patients can\u2019t spare. <\/p>\n\n\n\n

\u201cWe\u2019ve become so reliant on technology. When we don\u2019t have that technology and data, we become inhibited. The physician can\u2019t practice medicine to its fullest, which can later be construed as negligence, because they weren\u2019t able to provide adequate or appropriate care.\u201d \u2013 Dennis Cook, president of IronHealth<\/p><\/blockquote>\n\n\n\n

In fact, the first medical malpractice suit for a ransomware-related death is already on its way to the courts. In July 2019, ransomware paralyzed the systems<\/a> at the Springfield Medical Center in Mobile, Alabama. Computers across the hospital failed, including data from fetal heartbeat monitors in 12 delivery rooms. The suit alleges this outage led to the death of a newborn baby. The outcome of the case won\u2019t be known for some time, but the human cost of ransomware is undeniable.<\/p>\n\n\n\n

2. Hacked medical devices and product liability <\/h3>\n\n\n\n

Check out the rest of the story…<\/a><\/p>\n\n\n\n

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