Reid Health settles Meta Pixel privacy lawsuit

The Indiana-based hospital agreed to resolve claims that its website tracking tools improperly shared patient data with third parties.

What happened

Reid Hospital & Health Care Services, Inc., known as Reid Health, has agreed to settle a class action lawsuit over the alleged use of Meta Pixel and other tracking technologies on its website. The lawsuit, Jane Doe v. Reid Health, filed in Wayne County Superior Court, claimed that these tools transmitted patients’ protected health information (PHI) to external entities without their consent.

Meta Pixel can capture user activity such as pages visited, searches made, and form selections, linking that data to individuals through their IP addresses or logged-in accounts. The lawsuit alleged that this data could reveal sensitive health information and was used for targeted advertising.

Going deeper

The plaintiffs accused Reid Health of negligence, unjust enrichment, breach of fiduciary duty, and invasion of privacy. They also cited violations of the Indiana Deceptive Consumer Sales Act. Reid Health denied any wrongdoing, stating that no personally identifiable information was shared with Meta or other third parties and that its use of tracking tools did not violate privacy laws.

Despite maintaining its position, the hospital agreed to settle after weighing the financial and operational risks of continuing litigation. The settlement provides both monetary and protective relief for affected individuals.

What was said

Reid Health stated that the decision to settle was not an admission of guilt but a practical choice to avoid prolonged legal expenses and uncertainty. “Reid Health disputes that it committed or attempted any wrongful act,” the organization stated, while confirming that the mediation process produced a resolution acceptable to both sides.

Under the agreement, class members can claim a $25 cash payment and will receive access to a “Medical Shield” product designed to protect against misuse of personal data. Notices were mailed on September 25, 2025, and participants have until October 25 to object or opt out. Claims must be filed by December 24, with the final fairness hearing scheduled for December 9.

The big picture

According to Paubox report data, lawsuits like the class action claims against Reid Health for alleged negligence and invasion of privacy add to the growing financial burden facing healthcare providers, a trend reflected in the $9.76 million settlement paid by Solara Medical Supplies. The report noted that these cases show the challenge of maintaining compliance across every digital touchpoint, especially when third-party tracking tools are involved. The HHS Office for Civil Rights (OCR) continues to stress that organizations must be proactive in meeting HIPAA requirements and “should not wait for an incident to reveal long-standing HIPAA deficiencies.”

FAQs

What is Meta Pixel, and why is it controversial in healthcare?

Meta Pixel is a tracking tool that helps website owners measure engagement and advertising performance. In healthcare, its use is controversial because it can inadvertently collect sensitive patient data tied to health-related web activity.

What is a “Medical Shield” product?

The Medical Shield service included in the settlement provides credit and data monitoring tools that help detect and prevent misuse of personal health information.

Are other hospitals facing similar lawsuits?

Yes. Several healthcare systems in the U.S. have faced lawsuits for embedding Meta Pixel or Google Analytics on patient portals or appointment pages, with some already reaching settlements.

What privacy laws are relevant to these cases?

Such cases typically reference HIPAA, state consumer protection laws, and data privacy statutes that regulate how personal or medical information can be collected and shared online.

What can healthcare organizations learn from this case?

Organizations are being urged to audit third-party scripts on their websites, strengthen consent practices, and ensure analytics tools do not transmit identifiable health data without proper safeguards.