In 2024, cyber attacks crushed hospitals with ransom demands and lawsuits. The average breach cost hit $9.8M. Some hospitals paid to restore access, while others refused and faced weeks of shutdowns, leaked medical data, and lawsuits from affected patients. Let’s review real-world cases so you can stay ahead of the next big hit.
When a hacker locks down a hospital's data and demands $5M, the ransom is just the tip of the iceberg. The actual recovery costs include lawsuits, government fines, and lost revenue. Let's review these below in further detail.
When a healthcare cyber attack includes a ransom demand, the financial impact extends far beyond the initial payment. Hackers don’t just lock systems, they hold hospitals hostage, forcing critical decisions between paying millions or risking prolonged downtime. Even when the ransom payment is made, there’s no guarantee of full system restoration, and many organizations still face data leaks, regulatory fines, and reputational damage.
Seconds count when responding to a healthcare cybersecurity breach. A multi-faceted response is critical as security teams must gauge the attack while containing damage.
Costs quickly add up, including:
Healthcare providers that lack a proactive incident response plan often face longer downtimes and higher recovery costs.
Breached healthcare data is more than an all-hands-on-deck IT problem; the legal and financial implications include:
Regrettably, the harm done to a healthcare provider's reputation, built over years of hard work and excellent patient service, is lost within minutes.
In February 2024, a major U.S. healthcare technology company, Change Healthcare, was hit by a ransomware attack. The attack disrupted payment processing systems across hospitals and pharmacies nationwide. The company reportedly paid an estimated $22 million Bitcoin ransom, demonstrating the financial burden cybercriminals place on healthcare providers and the need for varied payment and patient record systems.
Hospitals and healthcare providers rely on digital systems for everything from patient records to life-saving equipment, so downtime can be catastrophic when a healthcare cyber attack strikes.
In May 2024, Ascension Health suffered a ransomware attack that caused severe disruptions across its network. The breach affected claims submission, payment processing, and overall revenue cycle operations.
It was reported that:
The Ascension Health attack proves that without a strong security posture, the financial and operational consequences can spiral out of control.
When healthcare systems go offline, electronic medical records (EMRs) are inaccessible or corrupted; doctors may be unable to access critical patient histories, leading to delayed diagnoses, incorrect treatments, or medication errors. In extreme cases, a cyberattack could shut down life support machines, medical imaging systems, or medication dispensing devices, directly endangering lives.
On February 14, 2025, Australian fertility provider Genea suffered a devastating cyberattack that disrupted patients' IVF treatment cycles. The attack rendered crucial reproductive health data inaccessible, delaying treatments and causing emotional distress for affected patients.
This attack highlights how cybersecurity failures in healthcare can go beyond financial losses, derailing essential treatments and impacting lives in deeply personal ways. Security leaders must implement resilient data backups, real-time threat monitoring, network segmentation, and clear incident response plans.
Patients expect hospitals and medical providers to safeguard their sensitive health records, when healthcare data breaches expose patient information, organizations experience more than just financial damages, including:
Rebuilding trust after a healthcare cybersecurity breach is difficult but possible if organizations can communicate transparently with affected patients and demonstrate stronger security measures by investing in long-term cybersecurity resilience to prevent future attacks.
If you run a hospital, you need bulletproof backups, a battle-tested response team, and a staff that knows how to shut down attacks quickly.
Protect your organization with penetration testing, and start securing your systems today. For a step-by-step guide on avoiding cyber threats, check out our 5 ½ Steps to Cybersecurity.