Quest Diagnostics, Optum360 Unlawfully Shared Patients’ Data with Debt Collectors, Class Action Alleges

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Quest Diagnostics and billing collections partner Optum360 face a proposed class action in which a California consumer claims the companies illegally shared his sensitive medical data with a third-party debt collector without authorization.

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The 11-page lawsuit says that the medical testing company and Optum360 ran afoul of California’s Confidentiality of Medical Information Act (CMIA) when they transmitted the plaintiff’s private medical information to a third-party debt collector without consent, “even though such disclosure was unnecessary for collection.”

The complaint, though heavily redacted, explains that if a patient fails to pay Quest’s invoice for lab services within a specified period, the company uses third-party debt collectors to retrieve the outstanding payment. Since 2016, Optum360 has delivered Quest’s outstanding invoices to these third parties, the case shares.

The filing argues that state law only allows for health care companies or contractors, such as the defendants, to disclose medical data with a patient’s authorization, or with a few stringent exceptions.

“Neither was present,” the lawsuit alleges. “As a result, patients are entitled to damages based on [the defendants’] violation of their medical privacy.”

According to the suit, the companies’ practice of sharing sensitive patient data goes against industry standards and contravenes state law.

“As providers of health care or contractors operating in California, [the defendants] are required by the CMIA to ensure that medical information about patients is not disclosed or disseminated or released without patients’ authorization, and to protect and preserve the confidentiality of the medical information about a patient,” the case contends.

The lawsuit looks to represent any California residents whose medical information was sent by Quest Diagnostics and Optum360 to third-party debt collectors.

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