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Daily Newsletter

07 August 2023

Daily Newsletter

07 August 2023

Cyberattack on Prospect Medical disrupts operations

Following the cyberattack, Prospect Medical has closed emergency rooms in several states and diverted ambulances.

August 07 2023

A cyberattack that began at facilities operated by California-based Prospect Medical Holdings has disrupted hospital computer systems across the US.

Prospect Medical operates 16 hospitals and a network of more than 165 outpatient facilities and clinics in Connecticut, Pennsylvania, Rhode Island and Southern California.

As a result of the data security incident on 3rd August 2023, Prospect Medical has closed emergency rooms in several states as well as diverted ambulances, reported The Guardian.

In a press statement, Prospect Medical said: "Prospect Medical Holdings, Inc. recently experienced a data security incident that has disrupted our operations.

"Upon learning of this, we took our systems offline to protect them and launched an investigation with the help of third-party cybersecurity specialists. While our investigation continues, we are focused on addressing the pressing needs of our patients as we work diligently to return to normal operations as quickly as possible."

In an emailed statement to The Washington Post, Prospect said that the cyberattack ‘has disrupted’ its operations and is working with the US Federal Bureau of Investigation (FBI) and third-party cybersecurity specialists.

The FBI’s New Haven field office special agent in charge Robert Fuller said that the office is investigating cyber ransomware incidents at some of Prospect Medical’s local medical facilities, reported NBC Connecticut.

The cyberattack has impacted Eastern Connecticut Health Network (ECHN) and Waterbury HEALTH, which are part of Prospect Medical Holdings, reported News 8.

Fuller added: “We are working closely with law enforcement partners and the victim entities to address the issues. At this time there is no further information we can share as this is an ongoing investigation."

Eastern Connecticut Health Network said that all of its elective surgeries and GI procedures will be closed until further notice.

Healthcare companies are hesitant to invest in the metaverse

The COVID-19 pandemic pushed the healthcare industry to rapid digitalization. Increased use of telehealth, telepresence systems, remote diagnostics, predictive AI, and wearable technology is changing how healthcare is delivered and improving patient outcomes. Emerging technologies such as AR and VR are becoming increasingly routine for professional training, surgical assistance, and treatment of psychological and neurological disorders. In the pharma and medical devices industries, AR, VR, and AI are rapidly accelerating drug discovery and manufacturing and generating supply chain efficiencies. New digital opportunities will look to build upon disruptive technologies. However, affordability is a limiting factor to widespread adoption. Per GlobalData estimates, the metaverse market is expected to grow at a CAGR of more than 33% between 2023 and 2030. Although metaverse technologies could reinvent healthcare approaches and bring new experiences to healthcare providers and patients, adoption is still at an early stage. There are currently few use cases in the healthcare industry. The metaverse needs to overcome major challenges for healthcare, including regulation and data privacy concerns. Evidence of proven use cases and participation by a critical mass of users are imperative to drive a shift in metaverse investment.

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