New York City Hospitals Sever Ties with Palantir Amid Data Privacy Concerns
New York City's public hospital system has announced it will not renew its contract with Palantir Technologies, the American big data analytics and artificial intelligence firm. This decision comes as Palantir faces mounting scrutiny over privacy issues in its agreements with the UK's National Health Service (NHS) and other government contracts.
Contract Details and Hospital Statement
Dr Mitchell Katz, president of NYC Health + Hospitals, testified before the New York City Council that the contract with Palantir, focused on recovering money for insurance claims, is set to expire in October. He emphasized that the agreement was always intended to be short-term and included an "absolute firewall" to prevent data sharing with US Immigration and Customs Enforcement (ICE), with no reported incidents.
Documents obtained by the Guardian reveal that NYC Health + Hospitals has paid Palantir nearly $4 million since November 2023. The contract allowed Palantir to review patient health notes to help claim more public benefits through programs like Medicaid. It also permitted Palantir, with city agency permission, to "de-identify" protected health information for purposes beyond research.
In an emailed statement, NYC Health + Hospitals confirmed it will transition to in-house systems after the contract ends, ensuring no data is shared with Palantir or its applications. The agency stated, "NYC Health + Hospitals' use of Palantir technology is strictly limited to revenue cycle optimization, helping the public health care system close gaps between services delivered and charges captured, protect critical revenue, and reduce avoidable denials." Palantir has indicated it will correct "inaccuracies" in the public record but provided no further details.
Growing Scrutiny in the UK
As New York moves away from Palantir, the company is under similar pressure in the UK over its £330 million agreement with the NHS. Health officials worry that privacy controversies may hinder the nationwide rollout of Palantir's data system, despite efforts by Prime Minister Keir Starmer to accelerate deployment. As of last summer, fewer than half of the country's health authorities had adopted the technology due to concerns from communities and doctors.
A briefing by Medact, a health justice charity, warned that Palantir's software could enable "data-driven state abuses of power," including potential ICE-style raids. Palantir has denied such uses, calling them illegal and a breach of contract. Additionally, Palantir's expansion includes a contract with the UK's Financial Conduct Authority to investigate financial crime, sparking outcry from MPs who urge halting the agreement.
Medact has raised alarms about Palantir's access to de-identified patient data in the NHS, arguing that privacy protections are insufficient and data can be easily re-identified. An NHS spokesperson responded that the federated data platform supplier "was appointed in line with public contract regulations and must only operate under the instruction of the NHS, with all access to data remaining under NHS control and strict contractual obligations protecting confidentiality."
Data Privacy Experts Voice Concerns
Experts interviewed by the Guardian highlight risks in Palantir accessing de-identified data for non-research purposes, given its extensive government access and analytical capabilities. Sharona Hoffman, a law professor at Case Western Reserve University, noted, "De-identification is not the guarantee it used to be, and it's getting easier with AI capabilities to re-identify information."
Ari Ezra Waldman, a law professor at UC Irvine, expressed concern over contracts allowing data use for "purposes other than research," suggesting weak government negotiation or awareness of risks. He stated, "Whenever a company like Palantir or a hostile government collects information on vulnerable populations, we should be concerned."
Activist Campaigns and Future Implications
Activists in New York and beyond are celebrating the hospital system's decision as a victory. Groups like the American Friends Service Committee, part of the "Purge Palantir" campaign, pressured the city government to end contracts with Palantir, citing its ties to ICE and military operations. Kenny Morris, an organizer, argued, "We don't think that the same AI systems that are targeting immigrants here in the United States for ICE, as well as choosing places to bomb in Iran, should be the same AI systems used in hospitals."
In the UK, campaigns such as "No Palantir in our NHS" hope New York's move will bolster their fight. Medact and Amnesty International UK are calling on the NHS to terminate its contract with Palantir, inspired by the US example. Dr Rhiannon Mihranian Osborne of Medact said, "As campaigners in New York have shown, workers and communities can hold our health institutions accountable and push them to make the right choice. We will do the same here, and force NHS England to cancel this contract."
This development underscores ongoing global debates over data privacy, AI ethics, and the role of tech firms in public sectors, with potential implications for future government contracts and regulatory frameworks.
