Cyberattack cost Tenet $100M in Q2

Dallas-based Tenet Healthcare estimates the cyberattack it suffered in April cost the company about $100 million during the second quarter, CEO Saum Sutaria, MD, said during a July 22 earnings call, according to Seeking Alpha.

The data breach, which affected 1.2 million patients, "added significant pressure on volumes and earnings in April and May," Dr. Sutaria said. 

Tenet has since rebuilt its systems and restored network operations. The company also filed an insurance claim and hopes to collect the full amount. As of the second quarter, Tenet has recouped $5 million from its cybersecurity insurance, CFO Dan Cancelmi said. 

On July 5, a class-action suit was filed against both organizations, alleging they failed to properly notify patients of the breach or take proper precautions to prevent it, according to The Dallas Morning News. The suit seeks more than $1 million in damages.

Tenet and its affiliate, San Antonio-based Baptist Health System, reportedly learned about the data breach April 20, the lawsuit said. The protected health information of patients — including Social Security numbers, names, dates of birth, health insurance information, medical information, addresses, and billings and claims information — was compromised in the breach.

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