University of Mississippi Medical Center’s revenue declined about 20% below budget in February, following a cyberattack that disrupted its operations. The hospital system was approximately $34.2 million short of its expected $194.1 million in operating revenue, according to budget reports.
Hospital officials said they expect revenue to rebound as patient care charges logged on paper during the nine-day shutdown are entered into the system and as postponed surgeries are rescheduled. Dr. LouAnn Woodward, UMMC’s vice chancellor for health affairs, said the true financial impact may not be fully reflected until March or April.
UMMC, the largest public medical system in Mississippi, operates seven hospitals and 35 clinics statewide. It provides care to many low-income and uninsured patients regardless of their ability to pay. During the cyberattack, clinics statewide closed, and scheduled appointments and surgeries were canceled after the hospital’s electronic health record systems were compromised.
For nine days, medical staff relied on paper charts and operated without Wi-Fi or phone service. The hospital resumed normal operations on March 2. Jennifer Sinclair, UMMC’s chief financial officer, said roughly 650 surgeries were delayed, but these have been rescheduled. She expects the financial impact of these delays to be reflected in upcoming revenue reports.
Experts warn that ransomware attacks can have lasting financial effects. Dr. Christian Dameff of the University of California San Diego noted that hospitals often face significant costs to improve cybersecurity after such incidents. A 2020 cyberattack on the University of Vermont Medical Center resulted in 28 days of system downtime and $65 million in costs, according to Vermont Public.
Sinclair said the hospital’s net income is about $8.6 million behind budget for the year. She added that patient charges from the cyberattack period should be fully reflected in the system by the end of March, providing a clearer picture of the financial impact.
