GoKawiilNew York City’s public hospital system announced that it would not be renewing its contract with Palantir as controversy mounts in the UK over the data analytics and AI firm’s government contract.
The president of the US’ largest municipal public healthcare system, Dr Mitchell Katz, testified last week before the New York city council that the agreement with Palantir would expire in October.
He said at the hearing that the contract, which focused on recovering money for insurance claims, was always meant to be short-term, and that there was an “absolute firewall” preventing Palantir from sharing information with US Immigration and Customs Enforcement. He said that the agency has “not had any incidents”.
The contract and related payment documents shared with the Guardian by the American Friends Service Committee and first reported by the Intercept, show that NYC Health + Hospitals has paid Palantir nearly $4m since November 2023. The contract noted that Palantir would be able to review notes about patient’s health and help the hospital claim more money in public benefits through programs such as Medicaid. It also includes a line stating that with permission from the city agency, Palantir can “de-identify” patients’ protected health information and use it for “purposes other than research”.
NYC Health + Hospitals said in an email to the Guardian that it will be transitioning to systems that were made entirely in-house, and there will be no data shared with Palantir or use of the company’s applications after the contract expires. “NYC Health + Hospitals’ use of Palantir technology is strictly limited to revenue cycle optimization, helping the public healthcare system close gaps between services delivered and charges captured, protect critical revenue, and reduce avoidable denials,” the agency said in an emailed statement.
Palantir said it would correct “inaccuracies” in the public record but did not elaborate by press time.
Palantir presence grows in the UK
As New York City’s hospital system prepares to part ways with Palantir, the company is facing similar scrutiny over privacy issues in its £330m agreement with the UK’s National Health Service (NHS). Health officials in the UK are concerned that the controversy surrounding Palantir may stop the nationwide rollout of the company’s data system, even though Keir Starmer is trying to speed up deployment. As of last summer, not even half of the country’s health authorities had started using Palantir’s technology amid concerns from the community and doctors. A 12 March briefing by Medact, a health justice charity, said Palantir’s software could enable “data-driven state abuses of power”, including US-style ICE raids. Palantir has denied that the data could be used in this way, noting that it would be illegal and a breach of contract.
Palantir, which also contracts with the British government’s Ministry of Defence, is expanding its influence in the country – despite backlash from activists and some lawmakers. The Guardian revealed last week that Palantir is trying to gain access to sensitive national financial regulation data.
The Financial Conduct Authority, a watchdog for thousands of financial bodies from banks to hedge funds, awarded Palantir a contract to investigate internal intelligence data to help root out financial crime. That has sparked outcry from some MPs, who have urged the government to halt this agreement. Liberal Democrats called on Monday for a government investigation into the contract. Starmer has dismissed suggestions that the UK has become “dangerously over-reliant” on American tech companies, including Palantir, but noted he preferred to have more domestic capability.
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