UMMC revenue drops 20% after February cyberattack

University of Mississippi Medical Center’s revenue fell roughly 20% below budget in February, after a cyberattack forced the hospital system to cancel all elective surgeries and appointments for nine days, according to hospital officials.

The medical center was about $34.2 million short of its expected $194.1 million in operating revenue for the month. Hospital leaders expect revenue to rebound as patient care charges logged on paper during the attack are entered into the system and as postponed surgeries are rescheduled, said Dr. LouAnn Woodward, UMMC’s vice chancellor for health affairs.

During the cyberattack, UMMC closed clinics statewide and canceled scheduled appointments and surgeries after its electronic health record systems were compromised. Staff cared for patients using paper charts for nine days, some for the first time in their careers, and without access to Wi-Fi or phone lines. Operations returned to normal on March 2.

Approximately 650 surgeries were delayed during the attack, said Jennifer Sinclair, UMMC’s chief financial officer. She noted that canceled appointments and surgeries are being rescheduled and their financial effects should be reflected in future revenue reports. Clinic and operating room hours have been extended to accommodate the backlog.

Experts say cyberattacks like this can have serious financial consequences for hospitals. Dr. Christian Dameff, an associate professor at the University of California San Diego, said such attacks often require hospitals to spend significant sums to improve cybersecurity defenses. A 2020 cyberattack on the University of Vermont Medical Center cost about $65 million and caused a 28-day loss of electronic medical record access, according to Vermont Public.

Sinclair added that the hospital’s net income is about $8.6 million below budget for the year. She expects that by the end of March, all patient charges from the cyberattack period will be processed, providing a clearer picture of the financial impact.

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