Editor's note: This article has been updated to include a statement from Sutter Health.
California-based Sutter Health and MemorialCare are facing a proposed class action lawsuit filed by patients who claim that the organizations illegally used AI to record and transcribe confidential doctor-patient conversations without consent.
According to the lawsuit, filed on April 8, 2026, in the U.S. District Court for the Northern District of California, Sutter Health and MemorialCare deployed Abridge's ambient AI scribe, a widely used tool that records and transcribes clinical encounters, drafts clinical notes and incorporates them into EHR systems, without patient consent.
"Despite California's strict protections for confidential communications and medical information -- including the all-party consent requirement for recording confidential communications and the requirements of the Confidentiality of Medical Information Act --defendants implemented the AI recording system without obtaining meaningful, informed consent from patients prior to recording and transmitting their medical conversations," the lawsuit stated.
The plaintiffs, all patients who received medical care from the defendants within the past six months, alleged that they discussed sensitive medical information with their providers, expecting it to remain confidential.
"Plaintiffs did not receive clear notice that their medical conversations would be recorded by an artificial intelligence platform, transmitted outside the clinical setting, or processed through third-party systems," the lawsuit noted.
The plaintiffs alleged that Sutter Health and MemorialCare violated California's Confidentiality of Medical Information Act, the California Invasion of Privacy Act and the Federal Wiretap Act.
"We are aware of the case and are currently reviewing the matter," a Sutter Health spokesperson said in a statement provided to Healthtech Security. "We take patient privacy seriously and are committed to protecting the security of our patients' information. Technology used in our clinical settings is carefully evaluated and implemented in accordance with applicable laws and regulations."
As healthcare organizations continue to embrace ambient AI scribes to reduce burnout and increase efficiency, consent and privacy considerations remain crucial to maintaining compliance with state and federal law.
Jill Hughes has covered health tech news since 2021.
