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Tenet Healthcare Cyberattack Leads to $100M in Lost Q2 Revenue
As previously reported , Tenet Healthcare suffered a cyberattack that resulted in significant IT outages. According to an April 26 notice, Tenet “immediately suspended user access to impacted information technology applications, executed extensive cybersecurity protection protocols, and quickly took steps to restrict further unauthorized activity.”
The earnings report shed additional light on the cybersecurity incident, explaining that the company’s hospitals remained operational and continued to deliver effective patient care, “utilizing well-established back-up processes.”
Tenet is now fully recovered from the cybersecurity incident, but its Q2 earnings report showed that the incident took a financial toll on the organization.
Along with an unfavorable impact of approximately $100 million to adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization), the company’s net operating revenues experienced a decline of 11 percent compared to Q2 2021. The decline was partially attributed to the cyberattack, but also to the sale of Tenet’s Miami-area hospitals in Q2 2021.
“Same-hospital net patient service revenue per adjusted admission decreased 0.2 percent year-over-year for Q2’22 primarily due to the unfavorable impact of the cybersecurity incident, partially offset by improved pricing yield,” the report continued.
Despite these losses, the costs of recovery for Tenet Healthcare were comparable to those of other cyberattacks suffered by […]