Issue link: https://beckershealthcare.uberflip.com/i/1479222
108 HEALTHCARE NEWS 108 Cyberattack cost Tenet $100M in Q2 By Alan Condon D allas-based Tenet Healthcare estimates the cyberattack it suffered in April cost the company about $100 million during the second quarter, CEO Saum Sutaria, MD, said during a July 22 earnings call, according to Seeking Alpha. e data breach, which affected 1.2 million patients, "added significant pressure on volumes and earnings in April and May," Dr. Sutaria said. Tenet has since rebuilt its systems and restored network operations. e company also filed an insurance claim and hopes to collect the full amount. As of the second quarter, Tenet has recouped $5 million from its cybersecurity insurance, CFO Dan Cancelmi said. On July 5, a class-action suit was filed against both organizations, alleging they failed to properly notify patients of the breach or take proper precautions to prevent it, according to e Dallas Morning News. e suit seeks more than $1 million in damages. Tenet and its affiliate, San Antonio-based Baptist Health System, reportedly learned about the data breach April 20, the lawsuit said. e protected health information of patients — including Social Security numbers, names, dates of birth, health insurance information, medical information, addresses, and billings and claims information — was compromised in the breach. n Top HCA executive to retire after 36 years By Ayla Ellison H CA Healthcare National Group President Chuck Hall is retiring at the end of the year after nearly 36 years with the Nashville, Tenn.-based company. Mr. Hall, who oversees HCA operations at 96 hospitals across 13 states, joined HCA in 1987 as COO of Sam Houston Memorial Hospital in Texas. He served in various leadership roles before being named National Group president in 2006. "Chuck's career and expertise as an operator are unmatched, and his influence on our company extends well beyond hospital operations," Sam Hazen, HCA Healthcare's CEO, said in a news release. "His leadership during many natural disasters, as well as his focus on better care processes and technology, helped ensure the safety and care of our colleagues and patients. We wish him all the best in retirement." HCA, a 182-hospital system, said a search for Mr. Hall's replacement is underway. n TikTok parent buys 7-hospital chain in China for $1.5B By Nathan Tucker B eijing-based social media giant ByteDance has acquired one of China's largest private hospital chains for about $1.5 billion, according to an Aug. 9 report from Bloomberg. ByteDance, which owns TikTok, will fully own Amcare Healthcare, which operates women's and children's hospitals across China. Furthermore, two ByteDance subsidiaries now fully own Amcare, according to corporate registry tracker Qichacha. The company's healthcare app, Xiaohe, competes in online consultations, hospital appointments, and wellness services in a national healthcare sector worth an estimated $89 billion in value fueled by the pandemic. The deal is one of the largest to emerge from the Chinese tech industry since regulators began curbing "disorderly capital expansion" in 2020. n The downside of private equity for physicians By Patsy Newitt W hile private equity investment can provide stable funding and allow practices to be innovative, it may be incompatible with physician practice ethics and sustainability, the American Medical Association wrote in a recent blog post. The Aug. 1 post outlined a study in JAMA Internal Medicine that showed that physician management companies with private equity investment led to a rise in prices for anesthesia services for patients. Anesthesia service prices rose 26 percent for patients who used private equity-backed physician management companies, while prices at companies without private equity investment grew by 12.9 percent from 2012 to 2017. The post also cited a commentary from AMA President Jack Resneck, MD, published in JAMA Dermatology in which dermatologists reported a loss in physician control after being acquired by private equity firms. "While investors tout ongoing local decision-making, practices also may lose some control over staffing levels and capital equipment purchases," Dr. Resneck stated in the commentary. n