Canton & Company Insights

Change Management: Avoiding Single Points of Failure in Healthcare

Written by Don McDaniel | Apr 1, 2024 12:00:00 PM

By: Don McDaniel

Optimists tell us that change is good. That is, until Change becomes the primordial domino setting off a chain reaction culminating to the virtual halt of our healthcare ecosystem.  

Sounds dire – because it is. 

For those of us deeply entrenched in healthcare, the recent breach at Change Healthcare  serves as a serious wake-up call—a jarring reminder that our industry is not impervious to the evolving tactics of malicious actors. Although profound and far-reaching, and some would say ‘unprecedented’ – doesn’t this type of disruption in the healthcare supply chain sound at all familiar? For some, the dead-stop caused by the exposure at Change Healthcare is far too similar to those experienced during COVID-19. While not nearly as cataclysmic, I believe the comparison can be constructive, and the similarities are staring at us in the face. 

We must acknowledge the uncomfortable truth: our supply chains are only as strong as their weakest link. And with a behemoth like Change Healthcare compromised, it's evident that the weakest links are far too prevalent. 

A wake-up call that should have been answered long ago 

The implications of this breach are profound, but unfortunately not entirely unfamiliar. I ask – where are the changemakers enacting provisions for this kind of utter disruption? It's not merely about stolen data or compromised systems; it's about the impact to patient care and access, the erosion of trust in our institutions, and the financial fallout that inevitably follows such incidents. Change Healthcare, like many others in its league, sits squarely at the nexus of our healthcare infrastructure. Its compromise reverberates across the entire spectrum of care delivery, from hospitals to insurers to individual patients.  

WATCH: OpinionbLEADER – Ep 2 – Expected Failures

 

Lessons from the past

During COVID it became apparent to me – especially in conversations with friends in healthcare, particularly those managing large healthcare service organizations – that collectively we have dropped the ball. While no one person or entity could have predicted the full impact of the pandemic, where were the safeguards – the planning – to avoid or mediate some of the most foundational disruptions?

Employees on mass couldn't get to work, patients couldn't access care sites, many treatments put on hold, the list goes on. Think about some of the planning that is securely in place to deal with natural disasters that can disrupt so many operations. Do we have the same leniency for lack of planning in these scenarios? This absence of foresight is a failure across the entire healthcare sector, and such complacency is unacceptable. 

In an era where technological advancements have transformed the landscape of healthcare delivery, it's alarming that a $4 trillion industry remains susceptible to significant risks stemming from the actions of a single actor. The fact that a single breach could disrupt critical operations, jeopardizing patient care, financial transactions, and sensitive data integrity, underscores the urgent need for robust cybersecurity measures.

Change in Healthcare  

Organizations aiming for long-term viability and prosperity must consider both short and long-term implications of their supply chains, trading partners, and business operations. Understanding the implications and exploring alternatives is crucial. However, in the current landscape, transitioning to a new clearinghouse, for instance, is not a simple task. It could take months, given the intricacies of the system. Nevertheless, perhaps now is the time to exert pressure and brainstorm new ideas for addressing this issue. 

As the saying goes, change is one of life's only constants. Let's hope this moment of change is short-lived and not repeated. 

 

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