AMCA files for bankruptcy after massive data breach

After disclosing a March data breach that exposed millions of patients' health information, the American Medical Collection Agency has filed for Chapter 11 bankruptcy, according to SC Magazine.

The billing collections company's parent company Retrieval-Masters Creditors Bureau filed for bankruptcy on June 17. Documents state that AMCA is seeking to liquidate entirely.

AMCA CEO Russell Fuchs said the bankruptcy filing is due to the data breach that exposed the personal health information of millions, many belonging to Quest Diagnostics and LabCorp. Combined, Quest and LabCorp alerted close to 20 million patients that their information may have been affected.

Since the data breach, Quest, LabCorp and other clients have suspended doing business with AMCA, according to Mr. Fuchs. AMCA has also accrued more than $4 million in fees and expenses associated with the breach. The billings collection company has had to take out a $2.5 million loan to cover expenses from the breach, Mr. Fuchs said.

Additionally, AMCA has cut its staff from 113 to 25.

To access the court documents, click here

More articles on cybersecurity:
Ohio urology practice told to pay $75K in cyberattack
The evolving role CISOs play in health system risk management: 3 Qs with John Muir's Thomas August
Georgia hospital alerts 10,970 patients of data breach

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