2 Calif. Medical Groups Split Citing Cyberattack Dispute

Breakup Spotlights How Some Relationships Can Crumble After Attack, Investigation Marianne Kolbasuk McGee (HealthInfoSec) • October 1, 2024

Cyberattacks and major health data breaches in the healthcare sector often end up in court in class action disputes filed by patients. But sometimes such incidents lead to other fallout: irrevocably damaged business relationships.

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Graybill Medical Group, a physicians' practice in southern California, is splitting up with its affiliate practice, Palomar Medical Group. Palomar has provided management services to Graybill for nearly five years. Graybill says the reason for this separation is because Palomar allegedly provided an "inadequate" response to a cyberattack detected in May.

Graybill claims that Palomar still has not restored "critical functions," and that ...