Los Angeles hospital pays hackers ransom in bitcoins

In order to regain access to its computer systems, Hollywood Presbyterian Medical Center in Los Angeles paid hackers a ransom of 40 bitcoins — the equivalent of about $17,000.

On Feb. 5, hackers used malware to encrypt files, and then demanded ransom for the decryption key, hospital CEO Allen Stefanek said in a statement. "The quickest and most efficient way to restore our systems and administrative functions was to pay the ransom and obtain the decryption key," he said. "In the best interest of restoring normal operations, we did this." The ransom was paid, and by Monday, the hospital's technology experts were able to restore every computer system. Authorities were notified only after the bitcoins were handed over.

Stefanek said patient care and hospital records were never compromised, and for now, record keeping is being done with pen and paper. Cybersecurity expert Phil Lieberman told the Los Angeles Times this case was a first, and proves why health management systems need to tighten their security. "I have never heard of this kind of attack trying to shut down a hospital," he said. "This puts lives at risk and it is sickening to see such an act."

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