VillageMD Faces Lawsuit Over Online Tracking Technologies

An article from

Dive Brief:

• VillageMD is facing a lawsuit alleging the primary care provider disclosed personal and protected health information to third parties like Facebook and Google through online tracking technologies embedded on its website. 
• The suit, filed in U.S. District Court for the Northern District of Illinois and seeking class-action status, claims VillageMD uses the Meta Pixel to track and share information about site visitors, including pages visited, buttons clicked, medical providers viewed and appointments scheduled. 
• That data allows third parties to learn whether a user was seeking healthcare and infer their medical conditions, which marketers can use for targeted advertising, according to the lawsuit. 

Dive Insight:

The use of online tracking technologies, which collect and analyze information about how users interact with websites or apps, is a common practice among healthcare providers. 

Nearly all hospital websites include tracking software that can transfer data to third parties, according to a study published last year in Health Affairs. Another study published this week in JAMA Network Open found 96 out of 100 hospital websites transferred user information to third parties, and privacy policies were found on only 71 sites.

Regulators have previously warned healthcare organizations about their use, arguing the technology could reveal information about health conditions, diagnoses, treatments and frequency of visits to third parties, such as tracking technology vendors.

But providers have pushed back on HHS guidance that says HIPAA-regulated entities can’t use trackers that would disclose protected health information to technology vendors.

Late last year, a group of hospitals and hospital lobbies sued the Biden administration, claiming the guidance would limit providers’ ability to improve their websites and publicize information and services based on community needs. 

The latest suit in the tracking debate, brought by a Massachusetts resident who has been a VillageMD patient for more than a year, alleges the primary care chain used the tracker to market its services and boost profits.

“By installing the Meta Pixel on its Website, Defendant effectively planted a bug on Plaintiff’s and Class Members’ web browsers and compelled them to disclose Private Information and confidential communications to Facebook without their authorization or knowledge,” according to the suit. 

The lawsuit comes as VillageMD has been in the midst of a reorganization. The Walgreens-backed chain has closed 140 clinics in recent months and plans to exit its home market in Illinois this month. 

On a second quarter earnings call, Walgreens reported a $6 billion net loss, largely attributable to the declining value of VillageMD.