Business dependencies pose external Y2K operational risks. Even if a hospital takes care of its own Year 2000 problems, it may still experience business interruptions if third parties upon which it depends fail to do so. Health care systems cannot function effectively without reliable support from medical insurance payers, claims clearinghouses, banks, and suppliers of hundreds or thousands of other goods and services, all of which are potentially vulnerable to Y2K failures. Public infrastructure failures are also possible. Hospitals cannot operate without power, water or police and fire protection.
Public transportation is essential to many employees and patients.
As the health care industry continues to consolidate and cut costs, institutions face increasing financial pressures. Year 2000 failures by providers or payers could result in late, miscalculated or rejected claims for payment. Also, the direct costs of making computer systems compliant are increasing dramatically in a sellers' market of Y2K vendors and consultants. Business Failures Year 2000 problems will also cause a certain number of business failures, particularly among mid-sized companies. Such total or partial business failures are likely to trigger multiplier effects.