Kaiser Permanente Settles $49 Million Lawsuit over Improper Waste Disposal and Patient Information Protection
SAN FRANCISCO — Healthcare provider Kaiser Permanente has reached a $49 million settlement with the state of California and multiple counties following allegations of improper hazardous waste disposal and failure to protect sensitive patient information.
State Attorney General Rob Bonta emphasized the significance of holding Kaiser accountable due to its status as the largest healthcare provider in California, serving over 8.8 million residents in more than 700 facilities. Bonta warned that negligence in handling dangerous waste and patient information could result in widespread harm.
The investigation began in 2015 when undercover inspectors from various District Attorneys’ offices discovered dumpsters containing thousands of paper medical records, as well as hazardous waste such as blood-filled syringes and human body parts. The inspectors also found pharmaceutical drugs, medical devices filled with bodily fluids, and hazardous waste in trash cans and bins at 16 Kaiser medical facilities across the state.
According to Bonta, these discoveries posed a serious risk to anyone who might come into contact with them, including healthcare providers, patients, custodians, sanitation workers, and landfill workers.
As a result, prosecutors in San Francisco, Alameda, San Bernardino, San Joaquin, San Mateo, and Yolo counties launched an investigation, leading to the involvement of the California Attorney General’s office.
Bonta emphasized that as a major healthcare provider, Kaiser Permanente has a clear responsibility to follow specific laws regarding waste disposal and patient information protection. The failure to do so was deemed unacceptable, and Bonta stressed that it must not happen again.
In response to the allegations, Kaiser Permanente, headquartered in Oakland, California, acknowledged the seriousness of the matter and took full responsibility. The company stated that it is cooperating with the California Attorney General and county district attorneys to rectify the improper disposal of hazardous and medical waste within some of its facilities.
Kaiser claimed that about six years ago, it became aware of instances where some facilities failed to adhere to their stringent policies and procedures, resulting in incorrect waste disposal. The company promptly conducted an extensive audit of waste streams at its facilities and implemented mandatory and ongoing training to address the issue.
Notably, Kaiser stated that it was not aware of any body part being discovered during the investigation.
As part of the settlement, Kaiser Permanente will be required to engage an independent third-party auditor approved by the Attorney General’s Office and the district attorneys involved in the complaint. This auditor will assess Kaiser’s compliance with California’s laws regarding hazardous and medical waste handling, as well as patient health information protection. The retention of the auditor will be mandatory for five years.
Alameda County District Attorney Pamela Price underscored Kaiser’s obligation to treat its communities with the same level of care as its patients. Price expressed hope that this action would hold Kaiser accountable and prevent similar incidents from occurring in the future.
In addition to this lawsuit, Kaiser Permanente currently faces other legal challenges. In 2021, the federal government sued the healthcare giant, alleging Medicare fraud and the manipulation of medical records for higher reimbursements. Furthermore, in 2014, the California Department of Justice sued Kaiser after the company delayed informing employees about an unencrypted USB drive containing the records of more than 20,000 workers. The USB drive was discovered in a Santa Cruz thrift store.
The settlement highlights the importance of proper waste disposal and the protection of sensitive patient information. It serves as a reminder to healthcare providers of their significant responsibility to prioritize the safety and well-being of patients and the community they serve.