Becker's Hospital Review

108 CIO / HEALTH IT The cost of a malware attack: Nuance attributes $98M in lost revenue to NotPetya — 6 things to know By Julie Spitzer N uance Communications, a speech and imaging soware company, said it lost $98 million in revenues aer it fell vic- tim to the NotPetya malware attacks in 2017, ac- cording to the company's latest 10-Q filing with the Securities and Exchange Commission. Here are six things to know. 1. Nuance was struck with a cyberattack June 27 that affected systems used by its healthcare companies. Outages persisted through early August. 2. An investigation revealed the NotPetya at- tacks qualified as a security incident under HIPAA, but was not a breach of any protected health information, the company wrote in a July 27 letter to its customers. 3. Filings show Nuance blames the cyberat- tack for nearly $98 million in lost revenue. 4. "For fiscal year 2017, we estimate that we lost approximately $68.0 million in revenues, primarily in our healthcare segment, due to the service disruption and the reserves we established for customer refund credits relat- ed to the Malware Incident. Additionally, we incurred incremental costs of approximately $24.0 million for fiscal year 2017 as a result of our remediation and restoration efforts, as well as incremental amortization expenses," the filing reads. 5. Although the direct effects of the incident were remediated during its fiscal year 2017, Nuance expects it will spend even more in the upcoming year to address the lasting impacts of the attack. 6. "The malware incident had a continued effect on our results of operations in the first quarter of fiscal year 2018 including contributing to: a year-over-year decline in the annualized line run-rate in our on-de- mand healthcare solutions and in the esti- mated three-year value of on-demand con- tracts; a year-over-year decline in hosted revenue and an increase in restructuring and other charges. In addition, we expect to expend additional resources during fis- cal year 2018 and beyond to continue to enhance and upgrade information securi- ty," the filing reads. n Cerner: 5 updates on DOD's EHR rollout By Jessica Kim Cohen T ravis Dalton, senior vice president and general man- ager at Cerner, provided an update Feb. 28 on the U.S. Department of Defense's EHR rollout. The DOD's rollout of a Cerner EHR follows a "wave model," in which the system — called MHS Genesis — will replace the agency's legacy healthcare systems across three con- tinental U.S. regions and two regions overseas through 2022. The first wave of facilities to integrate MHS Genesis, located in the Pacific Northwest, began the transition Feb. 7, 2017, when the DOD implemented MHS Genesis at Fair- child Air Force Base outside Spokane, Wash. Here are five things to know about the DOD's MHS Genesis implementation. 1. In the year since Fairchild Airforce Base went live on MHS Genesis, the facility achieved stage 6 on the eight-stage HIMSS Analytics EMR Adoption Model, which measures the degree to which a hospital or health system uses its EMR functions. Twenty-two percent of U.S. outpatient fa- cilities have reached stage 6, which represents the sec- ond-highest designation. 2. The next three sites to go live on MHS Genesis were Na- val Hospital Oak Harbor and Naval Hospital Bremerton, both based in Washington state. Tacoma, Wash.-based Madigan Army Medical Center, which went live on the Cerner EHR in October 2017, marked the fourth and final pilot site for the project. 3. The pilot facilities now have access to clinical decision support, care management, data analytics and clinical in- telligence functionalities they did not have through their legacy EHR system, Mr. Dalton wrote. He added within the first four months of going live on MHS Genesis, Madigan Army Medical Center reported its average length of stay for patients with sepsis dropped 37 percent. 4. The DOD's MHS Genesis rollout is in the midst of a "planned optimization phase," during which Cerner offi- cials are working with Leidos, Accenture and the DOD to "retrain, assist with change management, answer ques- tions, address workflow where appropriate and resolve issues" among pilot facilities that are live on the EHR, ac- cording to Mr. Dalton. 5. Leidos, Cerner and Accenture, which were awarded the $4.3 billion DOD contract in July 2015, are working to re- fine some early adoption issues. "As can be expected with any large-scale change, there have been challenges," Mr. Dalton wrote. "Some early adoption issues mean that change management and gov- ernance processes are being refined. Some issues logged have taken longer to resolve than we would have liked, and productivity at the local level has taken some time to nor- malize. Although we seek ideal outcomes, we also know how complex this type of delivery can be." n

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