In a report filed with the Securities and Exchange Commission (SEC), Tenet Healthcare reported that a cyberattack the company suffered in April cost an estimated $100 million “unfavorable impact” on the organization’s second quarter.
Tenet operates over 600 healthcare facilities, including 465 ambulatory surgery centers and surgical hospitals, 60 hospitals and 110 outpatient centers.
The $100 million financial impact from the “disruptive cyberattack” was caused by lost revenues and remediation costs. Tenet reports that the cybersecurity incident temporarily disrupted a subset of acute care operations, but the hospitals remained operational and continued to deliver patient care using established backup processes.
According to Tenet, the company has insurance coverage and has filed a claim “within its policy limits.” As of Q2 2022, the company has recouped $5 million from its cybersecurity insurance.
Cyberattacks at hospitals are getting more expensive, research shows. The average healthcare breach now costs $10.1 million, according to IBM Security’s annual Cost of a Data Breach Report 2022. The average healthcare breach cost $9.2 million in 2021 and approximately $7.2 million in 2020.