Akumin was recently forced to temporarily postpone most of its clinical and diagnostic operations amid a ransomware attack, the publicly traded radiology provider announced Thursday.
The pause will last until Akumin can restore its systems in a “safe and secure manner,” leaving the company unable to see patients at its fixed-site locations. Based in Plantation, Florida, Akumin operates a network of imaging centers, providing radiology and oncology services to about 1,000 hospitals and health systems across 48 states.
“We will alert patients once we are able to reschedule appointments,” Akumin said in an Oct. 19 update. “At this time, we are unable to provide an estimated timeline for restoration of services, but we continue to make progress.”
Akumin first noticed suspicious activity in its IT network on Oct. 11, according to a filing with the U.S. Securities and Exchange Commission. Upon becoming aware, leaders immediately worked to secure networks and shut down systems. Akumin also launched an investigation, engaged experienced cybersecurity counsel, and has notified law enforcement.
“The company has begun notifying impacted business partners, and will continue to notify potentially affected third-parties and individuals in accordance with legal obligations,” the SEC filing stated, adding that Akumin resumed “treating some patients” on Oct. 13.
Ransomware incidents typically involve hackers installing malware to deny users or organizations access to files. Akumin did not share any details about the perpetrators of the scam or the amount they are seeking.
Update on financial challenges
Meanwhile, the same SEC filing also shared an update about Akumin’s recent financial challenges, first disclosed publicly in August.
Akumin is highly leveraged following the debt-supported purchase of Alliance Healthcare Services for $820 million in 2021. The company has been accruing interest on its loan from investment firm Stonepeak for two years. But on Sept. 1, the agreement switched to “cash pay,” initiating interest payments and placing further financial pressure on Akumin.
Given these challenges, the board of directors formed a special committee to devise potential solutions. The group includes representatives from Stonepeak, which is still owed $450 million in unsecured debts from Akumin.
Stonepeak has reportedly agreed to extend the latest cash interest payment from Oct. 16 to Oct. 20. The due date also was previously extended from Sept. 29, records show. Stonepeak has agreed to state that no default occurred upon the borrower’s failure to make the payment on the original due in late September.
However, in the event that Akumin does not pay Stonepeak $3,939,615.08 in cash by Oct. 20, the extension will be nullified and Stonepeak will “immediately be entitled to all its rights and remedies under Section 8 of the Series A Note as if the waiver and the amended waiver had never existed,” according to the agreement.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.