Closing of Illinois Hospital Linked to Ransomware Attack

In a groundbreaking development, St. Margaret’s Health in Spring Valley, Illinois, has announced its closure due to a cyberattack that occurred two years ago. This incident has marked the first time a hospital publicly links criminal hackers to its shutdown.

The cyberattack in 2021 left St. Margaret’s unable to file claims to insurers, Medicare, and Medicaid for several months, leading to a severe financial decline.

Consequently, St. Margaret’s will be permanently closing its doors on Friday.

Sister Suzanne Stahl, chair of the hospital’s parent organization SMP Health, cited the cyber attack as well as the challenges faced by rural hospitals with staffing shortages as key factors that made it impossible for St. Margaret’s to continue operating.

“Rural hospitals across the nation have been struggling, and many have already closed,” Sister Stahl expressed. “Sustaining our ministry has become an insurmountable task, and this brings us great sadness.”

Ransomware attacks on hospitals are not uncommon. According to federal data, there has been a surge in such attacks, with nearly 300 hospitals targeted in 2022. However, until now, none of them has been forced to close as a direct result of an attack.

When hospitals fall victim to ransomware attacks, they often face the challenge of finding alternative ways to deliver care without their indispensable computer systems that are integral to modern healthcare.

Data from cyber security firm Cyber Peace Institute reveals that, on average, a cyberattack on a healthcare system leads to 19 days of disrupted patient care.

In light of this increasing threat, various government agencies, including the FBI and the National Security Agency, have recently updated the #StopRansomware Guide in an effort to assist all organizations in minimizing the impact and likelihood of ransomware incidents.

Unfortunately, the closure of St. Margaret’s will result in residents having to travel longer distances to access essential healthcare services. Emergency room and obstetrics services will now require an additional 30-minute commute.