Monday Morning Update 7/29/24
Top News
The US State Department indicts an alleged North Korean government-backed hacker who it says was behind ransomware attacks on hospitals in Florida and Kansas, healthcare firms in Arkansas and Connecticut, and a medical clinic in Colorado.
The government is offering a reward of up to $10 million for further information on Rim Jong Hyok.
Hyok is accused of leading a hacker group that works for for North Korea’s military intelligence agency. The state department says that the group generates ransomware proceeds that are used to conduct cyber operations that target the US government and defense contractors.
Reader Comments
From Board Stiff: “Re: Cerner. Judging from the mass customer defections, its board was smarter than they seemed in unloading to Oracle at an inflated price.” Cerner’s board made some awful decisions after Neal Patterson died, starting with his replacement and capitulating to an activist shareholder who held few shares. However, they may have offset all of that by selling the company to Oracle at premium valuation just as the wheels were starting to come off. It would not have been pretty to watch CERN’s share price tank as their big clients abandoned ship, and the insiders surely knew that Epic’s dominance and Cerner’s abject failure to fix its revenue cycle software problems was a big storm on its corporate horizon. The board’s fiduciary duty is to shareholders, not customers or industry pundits, and in that regard they performed magnificently.
From Observer: “Re: Intermountain. Becky Fox is out as chief clinical information officer, per internal memo. CDIO, CHIO, and CCIO all out in the space of a month.” Unverified, but reported by a few folks. She took the position in December 2022 and previously shared time at Atrium Health with former CDIO Craig Richardville, who just left Intermountain. CHIO Diego Ize-Luwdlow, MD exited the health system last month.
HIStalk Announcements and Requests
Most poll respondents report no major personal impact from the CrowdStrike attack.
New poll to your right or here: Has your employer conducted a workforce reduction that you would consider significant in the past 12 months?
Steamy doldrums will end soon as noses reconnect with grindstones and companies get back to the serious business of selling, partnering, and acquiring. Decision-maker eyeballs are glued here, so contact Lorre to support HIStalk and gain competitive position. She loves working with startups, especially when it’s a company I’ve never heard of, which suggests they could use a booster rocket.
Another housekeeping announcement: sign up for the spam-free email notices that I send when I post something new (thus usually six skinny emails per week) and you’ll know stuff before those people who just cruise over when the mood strikes.
The optometrist who conducted my annual eye exam in her Target-connected practice said that my prescription would print next door at Target Optical, which apparently believes that patients who touch their printer are violating HIPAA.
Webinars
None scheduled soon. Previous webinars are on our YouTube channel. Contact Lorre to present or promote your own.
Acquisitions, Funding, Business, and Stock
Remote patient monitoring software vendor CoachCare receives a $48 million strategic growth investment.
Healthcare Growth Partners posts its first-half 2024 health IT market review:
- M&A surged, with other positive notes being increased investment and the IPOs of Waystar and Tempus AI.
- However, share price of those two IPOs is at or below the initial offering price and some of the increased M&A involved low-quality and distressed companies.
- Transaction valuations are down 20% from pre-pandemic levels.
- Valuations of public enterprise SaaS and health IT companies dropped 35% and 50%, respectively.
- Recent take-private health IT transactions at a significant premium to share price suggest a disconnect between public market valuations and health IT market sentiment.
- Health IT companies that claim AI capabilities are attracting 20% of the investment in the sector, but almost all of their output involves back-office tools that don’t improve patient care.
People
Sonifi Solutions names Jerome Ajot, MS (EPAM Systems) as CTO.
In Canada, Brightshores Health System hires Tim Pemberton, MBA (Queensway Carleton Hospital) as VP of digital health and technology, CIO, and chief privacy officer.
Announcements and Implementations
Google, the largest customer of Amazon-acquired primary care provider One Medical, will terminate its agreement with the company. Google was an early investor in One Medical and at one time made up 10% of its revenue. One Medical clinics that operate from Google’s campuses have already transitioned to Premise Health and its broader range of services, although One Medical will remain a Google in-network provider for employees who pay for their own memberships.
Privacy and Security
Philips discovers a vulnerability in its Vue PACS that could allow unauthorized users to view or modify data and install unauthorized software. Remediation involves changing network configuration until the company develops a patch.
Other
Cell phone providers in Australia will shut down their 3G mobile networks next month, which could take some medical devices offline. The Royal Flying Doctor Service uses 3G for telehealth, security cameras, and employee duress alarms and says that some insulin pumps and pacemakers will also need to be replaced quickly. Queensland Senator Malcolm Roberts says the shutdown will be “CrowdStrike 2.0.”
Sponsor Updates
- Tegria will sponsor the MUSE International Southeast Community Peer Group August 1 in Albany, GA.
Blog Posts
- Breaking barriers: How care management can bridge the gap in health data access (Wolters Kluwer Health)
- How and When to Analyze & Update Internal & External Medical Clinic Policies (Netsmart)
- Healthcare Experts Share How to ‘Go the Distance’ with Value Analysis (Symplr)
- The Benefits of Medical Coding Services (TruBridge)
- Data security, providing patient financial care + more: Navigating cyberattack ripple effects (Waystar)
Contacts
Mr. H, Lorre, Jenn, Dr. Jayne.
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"A valid concern..." Oh please. Everyone picks the software they like and the origin of that software is an afterthought.…