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Yahoo
17-05-2025
- Business
- Yahoo
Fresno hospital kickback scheme was fueled by wine, cigars and Vegas strip clubs
In the Spotlight is a Fresno Bee series that digs into the high-profile local issues that readers care most about. Story idea? Email tips@ One of the most brazen — and costliest — hospital kickback schemes involving the region's largest hospital group took place inside a nondescript, palm tree-lined medical plaza in north Fresno. That's where a healthcare technology company founded with money from Community Regional Medical Center built an exclusive wine and cigar lounge, complete with private humidor lockers for cigar storage, a state-of-the-art smoke ventilation system, and luxury wines and liquors valued at about $1 million. Only a select few executives and physicians had access to the office-turned-lounge near First Street and Alluvial Avenue, known as 'HQ2.' It was a place where doctors, healthcare executives and physician group leaders were generously rewarded for using the company's electronic health record system and fraudulently referring patients in violation of several federal laws, according to a 2019 unsealed federal whistleblower lawsuit. The alleged conspirators planned to build a grander 'ranch' luxury retreat using funds generated from the kickback scheme, according to the complaint, which was unsealed Wednesday. The scheme came to light only after a 2017 building fire at the medical plaza revealed a cache of a thousand bottles of wine,arousing suspicions from the whistleblower, an accountant, of improper spending. The U.S. Attorney's Office announced Wednesday that Community Health System and healthcare technology affiliate Physician Network Advantage Inc. (PNA) have agreed to pay $31 million to the federal government to settle allegations that it violated the False Claim Act. Community Health System (CHS), Fresno's largest healthcare group, owns downtown Fresno's Community Regional Medical Center and the Clovis Community Medical Center, as well as a health plan and physician network. Community Medical Centers (CMC) is the name of the group that includes the hospitals and clinics under the CHS umbrella. PNA is a health care technology business founded and funded by CMC to support Fresno-area physicians' adoption of the electronic health records platform used by Community, according to federal prosecutors. PNA's CEO Chris Roggenstein is a 'longtime friend' of former CHS CEO Craig Castro, according to the lawsuit. At the heart of the complaint is a scheme that PNA provided lavish benefits to doctors and physician group executives in exchange for enrolling in CMC's electronic health record technology known as 'Epic EHR.' The lawsuit also alleges physicians and medical groups who joined the network made fraudulent referrals to CMC facilities in violation of the Anti-Kickback Statute. The kickback scheme involves several major players in Fresno's medical system, from hospital executives to medical records companies to some of the largest physician groups in the Central Valley. Some of the 17 luxury gifts, trips and donations listed in the lawsuit included: A trip to Paris, France for Castro and his family totaling approximately $63,000. A private plane for Timothy Joslin, former CEO of CRMC, to go to Las Vegas. Strip clubs and meals for CMC executives and physicians during a Las Vegas medical conference in January 2016. A $9,400 trip to Spain for Scott Wells, president of Santé Health and Santé Foundation, as well as Joyce Fields-Keene CEO of Central California Faculty Medical Group, or CCFMG (now known as Inspire Health Medical Group). 'The whistleblower lawsuit makes claims regarding personal choices that don't reflect our high standards as a non-profit health system, or the values of our current leadership team and board. And a number of elements in the 2019 lawsuit reflect either inaccurate or incomplete information,' said Michelle Von Tersch, senior vice president and chief of staff for CHS. In a statement, PNA said it cooperated with the Civil Division of the U.S. Attorney's Office in Sacramento in its review of Community Health System's electronic medical records program that began nearly 15 years ago. 'The settlement brings this matter to a conclusion without any determination or admission of legal liability for PNA,' the statement said. Thirty-five doctors were known to have received payment from CHS, according to the settlement agreement. According to the complaint, CMC embarked on the seven-year, $75 million quality improvement initiative in or around 2010 to replace their business and clinical data system with new technology — the Epic EHR system. CHS Board Chair Roger Sturdevant said that, in 2009, the federal government directed the healthcare industry to transition to electronic health records, which CHS did to provide patients with a 'robust, consistent, and secure electronic health records system.' 'However, it is clear we needed stronger oversight measures to assure that both Community and our vendor partner maintained appropriate compliance at all times.' Sturdevant told The Bee in a statement. 'While we are confident that physician referrals were driven by Community Health System's position as a leading provider of hospital-based and specialty services, we recognize that even the appearance of inappropriate incentives must be addressed.' In 2010, Physician Network Alliance, Inc. was formed with the sole purpose and business function of expanding defendant CMC's Epic EHR network of Fresno area medical practices — and to shelter the illegal kickback payments and elaborate gifts, the lawsuit says. According to the complaint, as early as 2011 CMC and PNA started giving kickbacks to Fresno-area physicians in the form of cash, expensive wine, strip-clubs, trips with private planes, and free or heavily discounted access to the Epic EHR software. PNA would bring in physicians and doctors groups into the network, all of which were subject to approval by CMC. In or around 2014 and 2015, CMC and PNA changed their building model so that PNA could retain some of the money received from the physician group, licensing fees and other monthly fees for maintenance and support of the Epic EHR system. Defendant PNA was able to retain a cash surplus from the Epic EHR client fees, so PNA began to use the excess cash for extra gifts and travel for CMC executives and CMC network physicians, such as the European and Vegas trips. PNA allegedly provided jobs to family members of CMC executives at the request of CMC. The HQ2 cigar lounge was constructed sometime after 2014 with an estimated $1.1 million of CMC funds, the complaint said. Michael Terpening, the former controller for PNA, discovered the 'illegal activity' after a fire at PNA's headquarters in 2017, in which 40 to 50 boxes of wine — totaling 1,000 bottles — were found in a storage room. When Terpening approached his boss Roggenstein about the wine, he was told it was 'leftover from the holiday party.' Terpening and his attorney could not be reached for comment. Discovery of the wine surplus led Terpening to become suspicious of other large expenditures submitted as deductible 'business expenses' for PNA, the complaint said. But, according to the complaint, Roggenstein ignored Terpening's advice to cease the illegal activity, and instead 'redoubled his criminal efforts.' Roggenstein and CMC had plans to build out the 'HQ Ranch,' a luxury retreat for CMC executives and physician practices that would include a cigar and wine lounge 'large and grander in scale than HQ2,' a skeet shooting range and a small off-road vehicle course. 'Once he realized that neither Defendant Mr. Roggenstein, Defendant PNA, nor Defendant CMC had any intention of remedying the above conduct, and in an effort to quit the illegal conspiracy, Mr. Terpening resigned from his position as a Controller for Defendant PNA,' the complaint said. The lawsuit alleged the defendants violated three federal laws through its kickback scheme: the Anti-Kickback Statute, the False Claims Act and the Stark Law. The Anti-Kickback Statute makes it a crime to knowingly and willingly offer, pay, solicit or receive any remuneration to induce a person to refer to an individual for the furnishing of any item or service covered under federal healthcare program. Claims submitted knowingly and in violation of the Anti-Kickback Statute constitute a 'false or fraudulent' claim under the False Claims Act, according to the lawsuit. The Stark Law prohibits a physician or medical provider from referring Medicare patients for certain services to an entity with which a physician's immediate family has a financial relationship. The 2019 complaint lists several defendants, including: Fresno Community Hospital and Medical Center; Physician Network Advantage, Inc.; Santé Health System; Santé Health Foundation; Berj Apkarian; Craig Castro; Central California Faculty Medical Group; Timothy Joslin; Michael Muruyama; Grant Nakamura; Patrick Rafferty; Christopher Roggenstein; and Michael Synn. On Tuesday, summons were issued to the defendants. In court filings, the U.S. The Attorney's Office said it chose not to intervene at this time given the settlement with defendants Santé Health System, Inc., Santé Health Foundation, Central California Faculty Medical Group, Grant Nakamura and Michael Synn. But it has left open the possibility that it may take action pending further investigation. A scheduling conference is set for Aug. 21 at 11:30 am in the Yosemite Federal Courthouse with Magistrate Judge Helena M. Barch-Kuchta.
Yahoo
01-05-2025
- Business
- Yahoo
Healthcare Cybersecurity Market to Hit Valuation of US$ 82.90 Billion By 2033
Healthcare cybersecurity demand will be driven by ransomware resilience needs, FDA mandates for medical devices, and AI-powered threat detection. We Expect consolidation as Palo Alto, Microsoft, and specialized players (Claroty, MedCrypt) dominate, while legacy vendors lose share due to clinical integration gaps. Chicago, May 01, 2025 (GLOBE NEWSWIRE) -- The global healthcare cybersecurity market was valued at US$ 21.25 billion in 2024 and is expected to reach US$ 82.90 billion by 2033, growing at a CAGR of 18.55% during the forecast period 2025–2033. The healthcare cybersecurity market is experiencing unprecedented demand, driven by a 137% increase in ransomware attacks targeting hospitals over the past 18 months (Check Point Research) and new FDA premarket cybersecurity requirements taking full effect. Current needs center around three critical gaps: medical device security (with 68% of IoT healthcare devices running unsupported operating systems per Cynerio), identity governance for hybrid workforces (where 42% of clinicians still share passwords according to Imprivata), and cloud configuration management (as 73% of Azure healthcare tenants show critical misconfigurations per Orca Security). This surge in threats across the healthcare cybersecurity market has created a $3.2 billion serviceable available market just for healthcare-specific solutions, with managed detection and response (MDR) growing fastest at 89% YoH. In line with this, major players are responding through both innovation and acquisition—Palo Alto Networks' acquisition of medical device security startup Zingbox exemplifies the strategic focus on clinical environment protection, while Microsoft's healthcare-specific Azure Sentinel modules now protect 41% of Epic EHR implementations. Request Sample Pages: Adoption patterns reveal stark divisions in healthcare cybersecurity market maturity. While 78% of academic medical centers have deployed AI-powered anomaly detection (Darktrace), only 29% of community hospitals can monitor medical device traffic in real-time (Ponemon). The competitive landscape has bifurcated between platform players like Cisco (now securing 32% of healthcare network infrastructure) and specialists like Claroty, whose medical device security platform grew 140% in hospital deployments last year. Legacy vendors face challenges—despite McAfee's 63% market share in endpoint protection, only 17% of healthcare CISOs rate their solutions as effective against modern supply chain attacks (KLAS). Some of the emerging differentiators in the healthcare cybersecurity market include regulatory automation (ServiceNow's HIPAA workflow tools reduced audit prep time by 58% at Kaiser) and clinical context awareness (Armis' device-to-EHR mapping prevented 12,000 false alerts at Mass General). However, persistent adoption barriers remain, with 61% of organizations citing clinical workflow disruption as their top concern (CHIME), explaining why behavior-adaptive security tools like Hypr's passwordless authentication see 3x faster deployment times than traditional IAM solutions in emergency departments. Key Findings in Healthcare Cybersecurity Market Market Forecast (2033) US$ 82.90 billion CAGR 18.55% Largest Region (2024) North America (35%) By Deployment Mode On-Premise (60%) By Security Type Network Security (35%) By Threat Type Malware (32%) By End Users Hospitals (40%) Top Drivers Rising ransomware attacks targeting sensitive patient data and systems. Strict regulatory compliance mandates enforcing robust data protection measures. Increased adoption of telehealth and IoT devices expanding vulnerabilities. Top Trends AI-powered threat detection for real-time attack mitigation and response. Zero-trust security frameworks replacing traditional perimeter-based defenses. Growth in healthcare cloud security investments for scalable protection. Top Challenges Legacy systems with outdated security protocols increasing exploitation risks. Shortage of skilled cybersecurity professionals specializing in healthcare threats. High costs of advanced security solutions straining healthcare budgets. Network Security: Zero Trust Adoption and Persistent Vulnerabilities Healthcare networks remain a prime target due to legacy systems and high-value data. A 2024 HIMSS Cybersecurity Survey found that 43% of healthcare breaches originated from unsecured network perimeters, with VPN exploits accounting for 28% of initial access points. Attackers in the healthcare cybersecurity market increasingly exploit misconfigured SD-WAN deployments, particularly in multi-site hospital systems. The shift to zero-trust network access (ZTNA) is accelerating, with 62% of large providers piloting or implementing it. However, only 19% have fully enforced least-privilege policies, leaving lateral movement risks unchecked. Furthermore, medical IoT compounds network risks—a single compromised device can expose entire VLANs. Darktrace's 2024 analysis revealed that 37% of healthcare IoT devices communicate with unexpected external IPs, often due to outdated firmware. Solutions like microsegmentation and AI-driven NDR (Network Detection & Response) are gaining adoption, but 56% of IT teams struggle with legacy-medical device compatibility. The rise of 5G-enabled remote care further strains security, with 41% of cellular-connected devices lacking encrypted backhaul. Cloud Security: Misconfigurations and Third-Party Risks Dominate Healthcare's cloud adoption surged in the healthcare cybersecurity market, but 73% of breaches involve misconfigured storage buckets or APIs (2024 IBM X-Force). Microsoft Azure and AWS host over 65% of healthcare cloud workloads, yet 32% of these deployments have excessive IAM permissions (Orca Security). The #1 exploited vulnerability is overprivileged service accounts, implicated in 51% of cloud-based ransomware attacks. Multi-cloud complexity also exacerbates risks—58% of providers lack unified visibility across AWS, Azure, and GCP. In addition, emerging solutions include Cloud Security Posture Management (CSPM) tools, now used by 47% of large health systems. However, shadow SaaS apps (e.g., unauthorized EHR plugins) create blind spots—28% of healthcare employees use unvetted cloud apps (Netskope) in the healthcare cybersecurity market. Encryption gaps persist: Only 39% of cloud-stored PHI is encrypted at rest, despite HIPAA requirements. Vendors like Wiz and Lacework are gaining traction with automated compliance mapping, but adoption lags in mid-tier hospitals. Endpoint Security: Medical IoT and Unpatched Devices Under Siege Connected medical devices represent the fastest-growing attack vector in the healthcare cybersecurity market, with 1.4 vulnerabilities per device (Cynerio 2024). Infusion pumps and imaging systems are particularly vulnerable—23% run on unsupported Windows versions. A single unpatched device can cost hospitals $430K in remediation (Ponemon). Despite this, only 34% of providers enforce device-level encryption, and 61% lack real-time firmware monitoring. Therefore, EDR solutions are now deployed in 68% of hospitals, but 45% fail to detect low-and-slow attacks on IoT devices. Manufacturers are slowly improving—22% of new devices now support secure boot and signed updates. FDA's 2024 premarket cybersecurity guidance mandates SBOMs (Software Bill of Materials), but legacy device risks persist. Some health systems are piloting network air-gapping for critical devices, though this limits telehealth integration. Ransomware: Double Extortion and Supply Chain Attacks Escalate Healthcare ransomware attacks increased by 57% YoY in Q1 2024 (Check Point) in the healthcare cybersecurity market. The average dwell time before detection is 14 days, up from 9 days in 2023 (Sophos). Double extortion is now standard—83% of attackers exfiltrate data before encryption. Today, the top 3 ransomware variants (LockBit 3.0, ALPHV, and BlackCat) account for 76% of incidents, often exploiting ProxyShell and Log4j vulnerabilities. In line with this, defense strategies are evolving: 71% of providers now use immutable backups, but only 29% test restoration weekly. AI-powered behavioral analytics reduce dwell time by 40% (Darktrace). However, third-party breaches (e.g., MSPs) caused 38% of incidents, highlighting weak vendor risk management. Rural hospitals are disproportionately affected—62% lack dedicated ransomware playbooks (HHS). Competitive Landscape: Consolidation Trends & Emerging Differentiators The healthcare cybersecurity market vendor ecosystem is undergoing rapid consolidation, with 78% of venture capital funding in 2024 flowing to specialized providers in medical device security and compliance automation. Legacy players like Cisco and Palo Alto are acquiring niche innovators—9 out of 12 healthcare cybersecurity M&A deals this year targeted clinical workflow-integrated solutions (PitchBook). However, market fragmentation persists, with 64% of healthcare providers using 3+ competing endpoint security solutions simultaneously (Ponemon Institute), creating visibility gaps. Differentiation is now driven by regulatory-aware AI – vendors offering automated HIPAA audit documentation see 2.3x faster sales cycles in the healthcare cybersecurity market. The managed detection and response (MDR) segment grew 142% YoY as mid-sized hospitals outsourced SOC operations. Surprisingly, 41% of provider RFPs now mandate FDA pre-market cybersecurity controls for vendor selection, favoring firms like MedCrypt and Sternum. Pricing models are shifting—63% of new contracts include breach warranty clauses, transferring risk to vendors. Remote Care Security: Telehealth Vulnerabilities & RPM Device Risks Healthcare cybersecurity market data shows 61% of telehealth platforms lack end-to-end encryption for specialty consultations (CynergisTek Audit Findings), while 78% of patient-facing apps fail OWASP Mobile Top 10 compliance (NowSecure). The most targeted vulnerability is SSO implementation flaws in EHR-telehealth integrations, enabling 39% of all identity-based attacks (Okta Healthcare Threat Report). RPM devices present alarming risks—FDA's 2024 recall list includes 14 devices with hardcoded credentials, impacting 230,000 patients. Leading providers in the market are adopting FIDO2 authentication with biometric fallbacks, reducing account takeovers by 89% (Mayo Clinic Pilot). Emerging technologies show promise—quantum-resistant encryption pilots in academic medical centers grew 320% YoY (Post-Quantum). However, interoperability requirements force 71% of providers to accept vulnerable API connections (CommonWell Alliance), creating systemic risks. Request Additional Details Before Purchase: Deployment Benchmarking: Cloud Migration Patterns & Legacy Challenges Primary infrastructure data in the healthcare cybersecurity market reveals hybrid cloud architectures now dominate in terms of growth rate, with 68% of providers running critical workloads across 2-3 platforms (Flexera 2024). Cost analysis shows on-premises EHR security requires 37% more FTEs than cloud equivalents (HIMSS Analytics), yet 89% of academic medical centers retain physical data centers for research compliance. Container security remains problematic—52% of healthcare Kubernetes deployments expose sensitive pods due to misconfigured network policies (Red Hat OpenShift Audit). The zero trust implementation gap is striking—while 81% of providers have ZTA roadmaps, only 29% have protected medical IoT segments (Fortinet Survey). Legacy system burdens are quantifiable—Windows Server 2008 systems require 3.2x more patching hours than supported OS (Tenable), costing $420K annually per 500-bed hospital. Air-gapping shows unexpected ROI—critical care networks using physical segmentation reduced incident response costs by 63% (ECRI Institute), though with 41% higher maintenance overhead. Global Healthcare Cybersecurity Market Major Players: IBM Corporation Cisco Systems, Inc. Palo Alto Networks Symantec Corporation (Broadcom Inc.) Fortinet, Inc. Check Point Software Technologies Ltd. McAfee, LLC Trend Micro Inc. ClearDATA Imprivata Other Prominent Players Market Segmentation: By Component Solutions Identity and Access Management (IAM) Risk and Compliance Management Antivirus and Antimalware DDoS Mitigation Intrusion Detection Systems (IDS)/Intrusion Prevention Systems (IPS) Security Information and Event Management (SIEM) Firewall Data Encryption Services Managed Security Services Consulting & Training Risk Assessment & Analysis Support & Maintenance By Deployment Mode On-premises Cloud-based By Security Type Network Security Application Security Endpoint Security Cloud Security Data Security By Threat Type Malware Ransomware Phishing Distributed Denial of Service (DDoS) Advanced Persistent Threats (APT) Insider Threats Others By End Users Hospitals Pharmaceutical & Biotechnology Companies Health Insurance Providers Medical Device Companies Clinics & Specialty Centers Government Healthcare Institutions By Region North America Europe Asia Pacific Middle East & Africa (MEA) South America Need Custom Data? Let Us Know: About Astute Analytica Astute Analytica is a global market research and advisory firm providing data-driven insights across industries such as technology, healthcare, chemicals, semiconductors, FMCG, and more. We publish multiple reports daily, equipping businesses with the intelligence they need to navigate market trends, emerging opportunities, competitive landscapes, and technological advancements. With a team of experienced business analysts, economists, and industry experts, we deliver accurate, in-depth, and actionable research tailored to meet the strategic needs of our clients. At Astute Analytica, our clients come first, and we are committed to delivering cost-effective, high-value research solutions that drive success in an evolving marketplace. 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Channel Post MEA
26-03-2025
- Business
- Channel Post MEA
ManageEngine's AD360 Expands Its Integration Network With 100+ Prebuilt Integrations
ManageEngine has announced that AD360, its identity and access management (IAM) platform, is further expanding its integration offerings by adding over 100 new prebuilt integrations. This expansion is a decisive step in the company's endeavor to strengthen its converged IAM platform capabilities. In addition to the extension of support to popular HRMS, ITSM, SIEM, and other enterprise applications, AD360 also comes with REST API capabilities for custom integration with third-party and in-house applications. Why This Matters: The Enterprise Perspective Large enterprises today face a major challenge: managing various tools with widespread, fragmented data. In a press release titled 'Gartner Identifies the Top Cybersecurity Trends for 2025' (issued March 3, 2025), Gartner highlights a common challenge for large enterprises: the need to optimize their cybersecurity toolsets for efficiency and security while balancing selections for an average of 45 cybersecurity tools available from over 3,000 vendors. Although enterprises often operate in multi-vendor IT environments out of necessity, this is an added complexity that leads to fragmented identities, resulting in delays in access and increased IT overhead. For example, Gartner's 2024 IAM Leadership Survey found that 54% of organizations have seen an increase in the number of identity-related breaches, with one in three organizations experiencing increased business interruptions, financial loss or regulatory penalties from such incidents. As many as 85% of identity-related breaches can be attributed to hacked machine identities such as service and automation accounts. Additionally, according to Verizon's 2024 Data Breach Investigations Report, around 31% of all breaches since 2013 involve stolen credentials. With global compliance laws and regulations requiring organizations to maintain accurate and up-to-date identity and access data at all times, keeping these records updated is critical. Seamless integration of identities is no longer just an IT challenge for enterprises; it's a business imperative. 'Our vision is to eliminate identity fragmentation and radically simplify enterprise identity governance,' said Manikandan Thangaraj, vice president at ManageEngine. 'With AD360's expanded integrations, we're empowering businesses to build truly unified digital ecosystems. With this release, we want to help our customers transform identity management from an operational burden into a strategic enabler of productivity, agility, and security. Now, a hospital can auto-provision clinician access in Epic EHR the same day they're hired in Workday, with no coding and no delays.' Enabling Business Agility with Seamless Integrations ManageEngine AD360's integrations leverage industry-standard protocols—including SCIM, SAML 2.0, OpenID Connect (OIDC), OAuth 2.0, and REST APIs—ensuring seamless compatibility across diverse IT ecosystems. Through an intuitive no-code configuration interface, IT teams can effortlessly establish connections and design automated workflows without specialized programming knowledge, dramatically accelerating implementation timelines from months to mere days. ManageEngine's extensive integration network for identity access management enables: Accelerated Value Realization: Enterprises can quickly integrate and automate identity workflows, reducing operational costs, minimizing errors, and enhancing productivity through unified life cycle management and real-time identity synchronization. Enterprises can quickly integrate and automate identity workflows, reducing operational costs, minimizing errors, and enhancing productivity through unified life cycle management and real-time identity synchronization. Strategic Flexibility and Choice: Maintain the freedom to integrate with a vast range of enterprise applications without vendor lock-in, ensuring compatibility, scalability, and support for diverse business needs. Maintain the freedom to integrate with a vast range of enterprise applications without vendor lock-in, ensuring compatibility, scalability, and support for diverse business needs. Advanced Identity Automation: With businesses seeking productivity improvements, AD360 can implement sophisticated, no-code identity orchestration processes to automate critical activities such as user provisioning, access modifications, identity synchronization, and secure offboarding across a company's identity ecosystem. With businesses seeking productivity improvements, AD360 can implement sophisticated, no-code identity orchestration processes to automate critical activities such as user provisioning, access modifications, identity synchronization, and secure offboarding across a company's identity ecosystem. Zero-Gap Compliance: Automatically align identity records across HR, IT, and security systems to pass audits for the GDPR, HIPAA, and SOX. 'The interoperability between critical business applications streamlines processes such as onboarding and offboarding, delivering measurable business value and accelerating ROI. Legacy IAM tools often treat integrations as an afterthought, requiring months to integrate an organization's IAM tech stack with ITSM or HCM tools. AD360 helps accomplish this with just a few clicks. It's not just about connecting systems—it's about fundamentally changing how enterprises manage identities while minimizing security risks,' Thangaraj stated. 0 0