Hacked to Pieces? The Effects of Ransomware Attacks on Hospitals and Patients

Abstract

As cybercriminals increasingly target healthcare, hospitals face the growing threat of ransomware attacks. Ransomware is a type of malicious software that prevents users from accessing electronic systems and demands a ransom to restore access. In this paper, we create and link a database of hospital ransomware attacks to Medicare claims data. We quantify the effects of ransomware attacks on hospital operations and patient outcomes. Ransomware attacks decrease hospital volume by 17-26% during the initial attack week, with recovery occurring within three weeks. Among patients already admitted when a ransomware attack begins, in-hospital mortality increases by 35-41%.

Note:

Funding Information: Research reported in this publication was supported by the NIHCM Foundation.

Conflict of Interests: The authors report no conflicts of interest.

Keywords: Hospitals, Cybersecurity, Health Care

JEL Classification: H51, I10, I11, I18, L86