CommonSpirit unable to estimate full burden of cyberattack 1 year later

Chicago-based CommonSpirit Health is keeping to a previously estimated $160 million hit from a major cybersecurity event in late 2022 but it is still unable a year later to fully evaluate the financial burden it will have to bear.

The $160 million figure is based on lost revenues from the interruption to operations and costs associated with remediation but is "exclusive of any potential insurance related recoveries," the system said in a Sept. 21 results filing.

"We have notified and continue to consult with our insurance carriers but are unable to predict the timing or amount of insurance recoveries at this time," according to the filing.

In addition, the nation's largest Catholic health system said lawsuits related to the ransomware attack on Oct. 2 are another uncertain factor.

"There can be no assurance that the resolution of this matter will not affect the financial condition or operation of CommonSpirit, taken as a whole."

CommonSpirit, which posted an operating loss of $1.4 billion for the fiscal year ended June 30, also said it cut about 2,000 jobs in the last three months of the fiscal year.

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