Dive Brief:
Mount Nittany Health could pay $1.8 million to more than 70,000 patients to settle claims it improperly shared their private data with tech companies for marketing purposes, according to a proposed settlement agreement filed in Centre County, Pennsylvania on Monday.
The nonprofit health system was sued last year on behalf of two anonymous Pennsylvania residents, who claimed Mount Nittany had disclosed information about their treatments, medical providers and online searches to companies including Google, Facebook and LinkedIn.
Should the settlement be approved, it will be the latest in a series of wins for patients looking to protect their data from marketers. Novant Health settled similar claims for $6.6 million in January, and Cerebal settled for more than $7 million in April.
Dive Insight:
Healthcare providers almost always use tracking technologies on their websites to gain understanding into users’ behavior and improve their offerings.
The American Hospital Association has defended the practice, arguing that tracking tools allow providers to troubleshoot where patients have trouble navigating websites and identify location-specific care needs.
However, patient advocates — and regulators — have increasingly taken issue with providers’ use of third party trackers, including Meta Pixel and Google Analytics, which are at the heart of the Mount Nittany complaint, without proper disclosure.
“Facebook might learn that the patient is pregnant before the patient’s close family and friends,” the complaint said. “But there is nothing visible on Mount Nittany’s website that would indicate to patients that.”
The claim alleged that Mount Nittany was handing over information about users “even when patients search for treatment options for sensitive medical conditions such as cancer or substance abuse.”
If Judge Brian Marshall okays the proposed settlement, people who lived in Pennsylvania and accessed a Mount Nittany website or patient portal dating back to 2007 could be entitled to a portion of the $1.8 million pie, according to the settlement. The attorneys estimate approximately 74,000 people are in the settlement class.
While patient advocates have had a string of victories in court, there have been some notable wins for providers.
The federal government has been unsuccessful in imposing further restrictions on providers’ use of third party tracking technologies. The HHS sought to issue guidance limiting providers’ use of trackers in December 2022, following investigations into the risks. Federal courts found that the guidance overstepped the agency’s authority.
