Healthcare policy has traditionally been focused on Congress enacting laws that are then implemented by federal agencies. However, in the current climate, federal courts increasingly make the final decisions on major healthcare policies.
In the complex and data-driven healthcare industry, litigation is virtually unavoidable. Healthcare cases often involve highly technical medical issues that are difficult for non-expert judges and juries to understand. Expert testimony is usually required to explain medical facts, standards of care, and causation. This creates challenges in presenting the case, understanding complex medical evidence, and managing costs.
Healthcare litigation comes with complex and distinct challenges, impacting organizations of all sizes. Legal teams can overcome these hurdles with the support of advanced eDiscovery tools and services, which streamline case management and reduce costs, ensuring both efficiency and compliance.
Massive Data
The healthcare sector generates a significant portion of the world’s data, including medical records, provider notes, billing information, lab results, imaging scans, communication logs, website data, and more. Despite efforts to keep this data secure, there has been an upward trend in data breaches in healthcare over the past decade. In 2023, 725 data breaches were reported to the Office for Civil Rights (OCR), potentially exposing 133 million records without patient permission.
In response to the growing threat of data breaches, companies are increasingly leveraging AI-powered eDiscovery solutions to enhance their incident response strategies. For instance, CDS Vision – Analysis helps locate Personally Identifiable Information (PII) and Protected Health Information (PHI) in compromised data through powerful visualizations. Once identified, Relativity Redact automates PII and PHI redaction.
Electronically Stored Information
Electronic health records (EHRs) are central in healthcare litigation. EHRs generally contain more information than paper records, in terms of volume and type. However, they are designed to facilitate efficient data entry and can be edited and revised to ensure accuracy or update a field left blank due to lack of data. While they provide critical documentation of care, EHRs can also introduce errors, omissions, or inaccuracies that can be used against healthcare providers in court. Plaintiffs may find inconsistencies in EHRs that strengthen their case, while providers face challenges in defending against electronic evidence.
To navigate these challenges, audit trail and version tracking provide a defensible record of EHR modifications within eDiscovery technologies, helping attorneys verify authenticity. AI-driven quality control further detects omissions and conflicting entries, reducing the risk of overlooked errors that could impact litigation.
High Costs
The discovery phase is typically the most expensive and time-consuming part of litigation, and healthcare litigation is particularly costly. Even if a healthcare provider is found not liable, the cost of defending against a lawsuit can be significant. High attorney fees and costs can be incurred during the process of collecting, reviewing, redacting, managing, and storing large amounts of data in eDiscovery. According to the EDRM, document review alone accounts for 70 to 80 percent of the total cost of eDiscovery. Since electronically stored information is often difficult and expensive to manage, the use of specialized software and expertise is critical to help keep the costs down.
To help mitigate these expenses, CDS provides comprehensive document review services designed to streamline workflows and reduce costs for eDiscovery clients. By leveraging specialized software and a wide network of in-house and contract reviewers, CDS enhances efficiency, ensuring that electronically stored information is managed effectively. Our advanced tools minimize unnecessary review time, allowing legal teams to focus on case strategy rather than document processing.
For example, CDS partnered with leading pharmaceutical company Aurobindo when they and several other leading manufacturers faced a large-scale litigation matter involving vast amounts of electronically stored information. By quickly coordinating over 100 contract reviewers, we helped the company streamline document review and meet critical deadlines.
“CDS helped us reduce the time and cost of document review significantly. Their ability to mobilize the right resources quickly and apply smart workflows saved us both budget and bandwidth,” says Amy Farris Wolfe, General Counsel at Aurobindo. “CDS isn’t just a vendor—they’re a true partner.”
Privacy Concerns
Concerns about patient privacy and data security have intensified. Court cases addressing the sharing of protected health information (PHI) without proper consent highlight the need for stringent data protection measures. Some existing privacy requirements include the Health Insurance Portability and Accountability Act (HIPAA), the Federal Trade Commission Act, state consumer privacy laws, the General Data Protection Regulation (GDPR), new and developing regulatory schemes, as well as contractual terms that may restrict how data can be used, disclosed, and how it should be protected.
To help organizations comply with these regulations and safeguard sensitive data, our eDiscovery tools — CDS Vision and CDS Convert — in Relativity provide secure access controls and advanced data classification. Once again, Relativity Redact proves valuable in ensuring PII and PHI are properly removed before disclosure, reducing the risk of violations. Security permissions and encryption protect data by restricting access to authorized users only. AI-driven classification help identify sensitive information, ensuring compliance with HIPAA, GDPR, and other privacy laws.
Tight Regulatory Oversight
The healthcare industry is one of the most heavily regulated in the U.S., and regulations are constantly changing. American healthcare systems must navigate complex regulatory schemes that frequently test market objectives and business operations. These regulations greatly complicate healthcare litigation, especially when it involves Medicaid, Medicare, or private insurers. Data governance—a structured framework that tracks how healthcare organizations collect, store, manage, and use patient data—is essential to ensure compliance with regulations.
Effective data governance in eDiscovery helps healthcare organizations navigate regulatory complexities by ensuring structured, compliant, and secure data management. AI-powered data tagging streamlines litigation by identifying records relevant to Medicaid, Medicare, and private insurers, while legal hold workflows ensure proper retention of sensitive data. Additionally, audit trails and compliance reporting track data access and modifications, providing a clear record for regulatory inquiries.
Time and Resources
Litigation, particularly complex medical cases, can drag on for years. When defending a case, healthcare providers often need to divert significant resources, both in terms of time and legal costs, away from patient care. This can be especially challenging for small practices or organizations.
CDS Advisory Services provides expert consultation and technical support, helping healthcare providers navigate complex litigation with streamlined solutions. Our team of former attorneys and data scientists recommends best practices, including efficient data management, keyword searches, and cutting-edge analytics to reduce costs and time. By offering tailored workflows and predictive coding, CDS helps organizations manage simultaneous litigation matters, ensuring the most efficient use of resources. Their consultative approach minimizes legal burdens, allowing healthcare providers to focus on patient care while ensuring compliance with discovery requirements.
