Ransomware Attack Partially to Blame for 120-Year-Old Hospital Closure

The effects of a ransomware attack contributed to the closure of St. Margaret’s Health, a 120-year-old hospital in the US state of Illinois, the chair of parent firm SMP Health said in a statement.

Such cyberattacks usually end up with the victim company either paying attackers, which is not the recommended course of action or managing to restore services using backups or by starting from scratch. Unfortunately, ransomware attacks can sometimes deal a fatal blow to a company.

“Due to a number of factors, such as the Covid-19 pandemic, the cyber attack on the computer system of St. Margaret’s Health and a shortage of staff, it has become impossible to sustain our ministry,” said Suzanne Stahl, the chair of SMP Health, the parent organization.

The Spring Valley St. Margaret’s Hospital has been active for 120 years, and while the ransomware attack is not listed as the main reason for the closure, it certainly had a significant impact.

The attack took place over two years ago, with the attackers managing to bypass protections and compromise the systems. In fact, the IT department had to shut down the systems completely, and any operations that required online connectivity were unavailable, including the patient information portal.

At the time, the ransomware attack looked exactly like all the rest, but it turns out that the financial impact was significant enough to warrant the hospital’s closure, although it’s not listed as the only reason. Even so, many other health facilities likely operate right on the brink, and a ransomware attack sends them over the edge and into bankruptcy.