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Hospital receives insurance payment for ransomware attack

Last September, the ransomware attack shut down more than 1,500 computers and servers at Campbell County Memorial Hospital and the Legacy Living and Rehabilitation Center.

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GILLETTE (WNE) — Campbell County Health has received an insurance settlement almost a year after a ransomware attack crippled its computer systems and disrupted its operations for months.

After a series of negotiations with multiple insurance companies, CCH has recouped $1 million as part of its insurance settlement, which officials hope marks an end to the cyber incident and fallout that dragged on throughout the past year.

“We obviously continue to look at our systems, but with the payments from the insurance companies we are closing the chapter,” said CCH Chief Financial Officer Mary Lou Tate.

Last September, the ransomware attack shut down more than 1,500 computers and servers at Campbell County Memorial Hospital and the Legacy Living and Rehabilitation Center.

It took the hospital until December to fully recover its technology infrastructure and return its operations to normal.

Initially, Tate expected an insurance settlement in the neighborhood of $1.5 million, which she said is about how much the attack cost CCH. But after negotiations with the hospital’s three insurers, she realized that number would likely not be reached.

A ransomware attack involves an outside party attaching malicious software to a computer system that locks it up and demands payment in order to receive a key to unlock and restore the system.

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