UT Board of Trustees approves $7.5M loan to University of Toledo Physicians

The University of Toledo Board of Trustees voted unanimously on Monday to allow the university’s foundation to lend the University of Toledo Physicians LLC $7.5 million to cover cash-flow issues.

The practice is experiencing cash-flow problems as a result of a cyberattack on Change Healthcare.

Change Healthcare, a subsidiary of United HealthGroup serves as the third-party claims clearinghouse for the University of Toledo Physicians Group, UT spokesman Tyrel Linkhorn said.

On Feb. 21, Change Healthcare publicly disclosed that a cyberattack had impacted it. BlackCat/ALPHV claimed responsibility for this attack and demanded money to return services online.

“The cyberattack affected hospitals and pharmacies across the country,” Mr. Linkhorn said. “The cyberattack prevented hospitals and health systems across the country — including University of Toledo Physicians Group — from collecting claims revenue,” Mr. Linkhorn said. “While some larger organizations may have used multiple claims clearinghouses, Change Healthcare was UToledo Physicians Group’s only clearinghouse.”

Mr. Linkhorn said that due to the revenue delay, UTP asked the board of trustees to approve the short-term bridge loan from the University of Toledo Foundation to cover operating expenses.

The ordinance stipulates the $7.5 million, six-month, short-term bridge loan will have a rate of a 1.25 percent interest rate plus the secured overnight financing rate. The interest rate will increase by an additional 0.50 percent should the loan go beyond the six-month term.

UTP will pay quarterly interest only on the outstanding balance.