Data breach hits Episource, millions of patients affected

A major data breach at healthcare services provider Episource has exposed the personal and medical information of over 5.4 million individuals, according to a notice recently filed with US authorities.

Episource, a firm that offers medical coding and risk adjustment services to doctors, health plans, and other healthcare organisations, confirmed that it had detected unauthorised access to its systems in early February 2025. An internal investigation later revealed that a cybercriminal had gained access and copied customer data between January 27 and February 6.

In response to the incident, Episource acted quickly to shut down affected systems and safeguard its networks. The company also launched a full investigation with the support of a specialised cybersecurity team and alerted law enforcement to the breach.

The company stated that while it is not aware of any misuse of the compromised data, the types of information accessed could vary from person to person. The compromised data could consist of names, addresses, email and phone details, birth dates, Social Security numbers, health insurance info, and medical records.

Episource notified the US Department of Health and Human Services (HHS), confirming the breach impacted approximately 5.41 million individuals. In addition to informing its healthcare clients, the company has also begun sending out notification letters to impacted individuals on behalf of those clients.

 

One such client, Sharp HealthCare, issued its data breach notice and informed HHS that more than 20,000 of its patients had been affected by the cyberattack.

 

Although reports have speculated that Episource may have been the victim of a ransomware attack, no known ransomware group has claimed responsibility for the incident so far. This silence is not unusual, especially in healthcare breaches where attackers often attempt to extort affected organisations privately.

This data breach highlights the ongoing risks faced by healthcare providers as cybercriminals increasingly target sensitive medical data. Given the scale and sensitivity of the information involved, the incident reinforces the importance of robust cybersecurity defences across the healthcare industry.

As large-scale data breaches continue to impact millions, patients are urged to remain vigilant. Those affected are encouraged to monitor their financial and medical accounts for any suspicious activity and to make use of any support or protection services being offered.