An Illinois hospital has earned the dubious distinction of being the first hospital to close its doors permanently as a result of a ransomware attack.
According to NBC News, St. Margaret’s Health will close permanently Friday. The Spring Valley hospital blamed a ransomware attack it suffered in 2021 as one of the primary causes of its closure.
“Due to a number of factors, such as the Covid-19 pandemic, the cyberattack on the computer system of St. Margaret’s Health, and a shortage of staff, it has become impossible to sustain our ministry,” Linda Burt, VP of quality and community services, said in a Facebook video.
According to Burt, the ransomware attack disrupted the hospital’s ability to submit claims to insurance companies, crippling the hospital’s cash flow. Ultimately, the hospital was never able to recover and get back on its feet.
The news follows on the heels of a report in March that rural hospitals are getting clobbered by ransomware attacks, suffering disproportionately as a result of budget and personnel constraints.
“We also saw cybercriminals shift their focus to small and rural hospitals with this group lagging behind in strengthening their defenses,” Kate Pierce, senior virtual information security officer at cybersecurity firm Fortified Health Security, said at the time. “Our rural hospitals are facing unprecedented budget constraints with up to 30% or more in the red, with the public health emergency scheduled to end in May.”
While St. Margaret’s Health may be the first US hospital to shut down as a result of a ransomware attack, it’s by no means the first major institution to do so. In May 2020, Lincoln College announced it was closing as a result of an attack it suffered.