NYC Health + Hospitals is ending its contract with Palantir in October, The Intercept reported March 24.
According to testimony from NYC Health + Hospitals CEO Mitchell Katz, MD, at a March 16 City Council meeting, the contract will not be renewed. The nearly $4 million agreement, in place since 2023, involved using Palantir’s software to improve billing efficiency for Medicaid and other public benefits, including scanning patient health notes.
The contract became controversial after it was publicly reported, prompting backlash from activists who objected to Palantir’s ties to military operations, surveillance and immigration enforcement.
Dr. Katz defended the partnership, saying patient data was protected by strict safeguards and that no issues had occurred, but emphasized the contract was always intended to be temporary.
After the contract ends, NYC Health + Hospitals will bring the data analysis work in-house. Advocacy groups said they will continue pushing other institutions to cut ties with Palantir.
A spokesperson for NYC Health + Hospitals told Becker’s its use of Palantir technology was 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.”
“Ensuring that we collect all insurance revenue to which we are entitled is critical as we navigate impacts to healthcare coverage and insurers’ increasing use of AI technologies to review and deny claims,” the spokesperson said. “Our efforts are focused on the financial foundation that enables us to continue providing care to all New Yorkers, without exception, including their ability to pay.”
Becker’s has reached out to Palantir for comment and will update this story if more information becomes available.
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