Epic Systems Cuts Ties with Particle Health Over Data Misuse Concerns

Epic Systems, a leading provider of electronic health records (EHR) software, has severed its connections with Particle Health, a venture-backed startup, amid allegations of unauthorized and unethical use of patient data. The decision affects Particle's access to a system encompassing over 300 million patient records, significantly impacting its operations as an intermediary in data transactions between Epic and healthcare providers.

In a notice issued to its customers on Thursday, Epic stated it had disconnected Particle from its network following concerns that Particle might be misrepresenting the purposes for which it retrieved patient records. This alleged misuse could pose serious security and privacy risks, including potential violations of the Health Insurance Portability and Accountability Act (HIPAA), which protects patient data by ensuring it is used only with the patient's consent or for permissible health care operations.

Epic's systems allow access to patient data through an interoperability network called Carequality, which facilitates the exchange of over 400,000 documents monthly. Member organizations of Carequality, including Particle, are required to strictly adhere to "Permitted Purposes" for data use, primarily for treatment. Epic reported that it had filed a formal dispute with Carequality on March 21 regarding its concerns with Particle’s activities.

In response to the disconnection, Particle has been actively engaging with Epic to resolve the issues. In a blog post on Friday, Particle acknowledged the challenge in defining 'Treatment' within complex healthcare structures and expressed commitment to rectifying the situation. The startup reported progress in restoring connectivity for some clients, while continuing efforts to bring others back online.

Epic, headquartered in Wisconsin and holding the largest hospital market share for EHR systems in the U.S., remains vigilant in protecting the integrity of patient information as the sector navigates the complexities of digital health records management and data privacy.