Kaiser Permanente Settles Lawsuit for $49 Million Over Improper Waste Disposal
Kaiser Permanente, California’s largest health care provider, has agreed to pay $49 million to settle a lawsuit brought by the state Department of Justice and prosecutors in six counties. The lawsuit accused Kaiser Permanente of disposing of syringes, medicine, bodily fluids, and potentially body parts in dumpsters bound for local landfills. During inspections, investigators found over 10,000 pages of medical records for 7,700 patients, raising concerns about the potential exposure of Californians’ personal information.
Under state and federal laws, Kaiser Permanente should have shredded the information and sent the medical waste to licensed facilities for disposal.
Health Risks and Potential Dangers
State Attorney General Rob Bonta emphasized the serious health risks posed by the improper waste disposal. He noted that health care providers, patients, custodians, sanitation workers, and landfill workers were all at risk of coming into contact with dangerous pathogens, needles, or explosive materials. While Kaiser Permanente denied any knowledge of body parts being found during the investigation, the attorney general stated that the waste included such items.
Kaiser Permanente’s Response and Investigation Timeline
Kaiser Permanente became aware of the improper disposals approximately six years ago and took immediate action. The health care provider conducted an extensive auditing effort of the waste stream at its facilities and implemented mandatory training to address the findings. In cooperation with the California Attorney General and county district attorneys, Kaiser Permanente has committed to correcting its performance regarding landfill-bound trash.
The Investigation and Systemwide Impact
The investigation, led by district attorneys from Alameda, San Francisco, San Joaquin, and San Bernardino counties, began in 2015. Undercover inspections at 16 Kaiser Permanente facilities revealed hazardous and medical waste, including aerosol cans, cleansers, batteries, syringes, medical tubing with bodily fluids, and pharmaceuticals.
The Department of Justice joined the local prosecutors, expanding the investigation statewide. Attorney General Bonta stated that the improper disposal practices were likely systemwide, affecting any location where Kaiser Permanente disposed of hazardous waste, medical waste, or private patient information.
Settlement Terms and Compliance Measures
Kaiser Permanente will pay $47.25 million directly. This includes civil penalties, attorney fees, and funds for supplemental environmental projects, primarily environmental prosecutor training. Additionally, the health care provider will spend $3.5 million within the next five years to implement enhanced environmental compliance measures, ensuring adherence to state laws. Failure to comply will result in additional penalties. Kaiser Permanente will also hire a third-party auditor to conduct audits at its facilities to evaluate compliance.
Past Incidents with Personal Data Mishandling
This is not the first time Kaiser Permanente has faced scrutiny for mishandling personal data. In 2014, the company paid $150,000 in penalties and fees due to the discovery of a USB drive containing employee records at a thrift store. The recent settlement highlights the need for heightened security measures to protect sensitive information.
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