NYC Dumps Palantir Amid UK NHS, FCA AI Scrutiny 2026

Key Points

• New York City’s public hospital system, NYC Health + Hospitals, will not renew its contract with Palantir, set to expire in October.
• The contract, worth nearly $4m since November 2023, focused on revenue cycle optimization for insurance claims like Medicaid.
• Dr Mitchell Katz, president of NYC Health + Hospitals, testified before the New York City Council that there is an “absolute firewall” preventing data sharing with US Immigration and Customs Enforcement (ICE), with no incidents reported.
• Contract documents allow Palantir to “de-identify” patient health information for purposes other than research, with city agency permission.
• NYC Health + Hospitals plans to transition to in-house systems, ensuring no data sharing with Palantir post-expiry.
• Palantir is expanding in the UK with a £330m NHS contract, amid privacy concerns from health officials, Medact, and activists.
• UK rollout of Palantir’s NHS federated data platform (FDP) faces delays; less than half of health authorities use it as of last summer.
• Medact briefing on 12 March warns of “data-driven state abuses of power”, like ICE-style raids; Palantir denies this as illegal.
• Palantir secured a contract with the Financial Conduct Authority (FCA) for financial crime detection, sparking MP outcry and Liberal Democrat calls for investigation.
• Keir Starmer dismisses overreliance on US tech firms but prefers domestic capability.
• Activists from Purge Palantir campaign, American Friends Service Committee, nurses union, and BDS claim victory; UK groups like Medact and Amnesty International urge NHS to follow suit.
• Experts like Sharona Hoffman and Ari Ezra Waldman highlight re-identification risks with AI and concerns over non-research data use.

New York (Britain Today News) March 26, 2026 – NYC Health + Hospitals, the largest municipal public health care system in the United States, has announced it will not renew its contract with Palantir Technologies, amid mounting activist pressure and growing scrutiny over the AI firm’s expanding role in UK public sectors.

The decision follows testimony from Dr Mitchell Katz, president of NYC Health + Hospitals, before the New York City Council last week. He confirmed the agreement, primarily for recovering insurance claims, expires in October and was always intended as short-term.

Why Did New York City Hospitals End the Palantir Contract?

Contract documents, shared with The Guardian by the American Friends Service Committee and first reported by Ken Klippenstein of The Intercept on 15 February 2026, reveal NYC Health + Hospitals paid Palantir nearly $4m since November 2023. The deal enabled Palantir to review patient health notes to maximise claims under programmes like Medicaid.

A key clause states that, with permission from the city agency, Palantir could “de-identify” protected health information for “purposes other than research”. De-identified data strips identifiers like names or social security numbers.

In an emailed statement to The Guardian, NYC Health + Hospitals emphasised:

“NYC Health + Hospitals’ use of Palantir technology is strictly limited to revenue cycle optimization, helping the public health care system close gaps between services delivered and charges captured, protect critical revenue, and reduce avoidable denials.”

The agency added it will transition to fully in-house systems, with no data shared or Palantir applications used after expiry.

Dr Katz testified there is an “absolute firewall” preventing Palantir from sharing information with ICE, stating the agency “has not had any incidents”.

Palantir responded by saying it would correct “inaccuracies” in the public record but offered no further details by press time.

What Privacy Risks Did Experts Highlight in the Palantir Deal?

Data privacy experts expressed alarm over Palantir’s access to de-identified New Yorkers’ data. Sharona Hoffman, a law professor at Case Western Reserve University, told The Guardian:

“De-identification is not the guarantee it used to be, and it’s getting easier with AI capabilities to re-identify information.”

Ari Ezra Waldman, a law professor at UC Irvine who researches government and tech data use, warned of risks

“whenever a company like Palantir or a hostile government collects information on vulnerable populations”.

He flagged the contract’s provision for non-research uses, suggesting the government lacked leverage or awareness during negotiations.

These concerns echo broader fears about Palantir’s history of cooperating with US federal agencies, including ICE, and its prowess in linking vast datasets.

How Are Activists Reacting to the New York Decision?

Activists hailed the non-renewal as a victory. The nationwide Purge Palantir campaign, involving nurses, pro-Palestinian groups, social justice organisations, and the Boycott, Divestment, and Sanctions (BDS) movement, pressured city government to sever ties.

Kenny Morris, an organiser with the American Friends Service Committee, which obtained the contract via public records request and shared it with The Intercept and The Guardian, stated:

“We don’t think that the same AI systems that are targeting immigrants here in the United States for ICE, as well as choosing places to bomb in Iran, should be the same AI systems used in hospitals.”

The national nurses union also participated in the push.

What Challenges Is Palantir Facing with Its UK NHS Deal?

Across the Atlantic, Palantir’s £330m contract with NHS England for the federated data platform (FDP) draws parallel scrutiny. As reported by Denis Campbell in The Guardian on 12 February 2026, health officials worry the controversy could halt nationwide rollout, despite Prime Minister Keir Starmer’s push to accelerate deployment.

By last summer, fewer than half of UK health authorities had adopted the technology, amid community and doctor concerns.

A 12 March 2026 briefing by Medact, a health justice charity, warned health bosses that Palantir’s software could enable “data-driven state abuses of power”, including US-style ICE raids. Medact argued NHS data privacy protections are insufficient, as de-identified data in the FDP can be easily re-identified.

Palantir has denied these risks, stating such uses would be illegal and breach contract. An NHS spokesperson told The Guardian:

“The supplier of the FDP was appointed in line with public contract regulations and must only operate under the instruction of the NHS, with all access to data remaining under NHS control and strict contractual obligations protecting confidentiality.”

UK campaigners with “No Palantir in our NHS” hope New York’s move inspires action. Dr Rhiannon Mihranian Osborne, corporate campaigns lead at Medact, said in an emailed statement to The Guardian:

“As campaigners in New York have shown, workers and communities can hold our health institutions accountable and push them to make the right choice. We will do the same here, and force NHS England to cancel this contract.”

Medact is in touch with Purge Palantir.

Amnesty International UK echoed calls to terminate the NHS deal.

Why Is Palantir Expanding into UK Financial Regulation?

Palantir’s UK footprint grows beyond health. As revealed by Alex Hern in The Guardian on 22 March 2026, the firm secured a contract with the Financial Conduct Authority (FCA) to analyse internal intelligence data against financial crime in banks and hedge funds.

This sparked backlash. On 23 March 2026, The Guardian reported MPs urging the government to halt the deal. Liberal Democrats called on Monday for a government investigation.

Palantir also contracts with the Ministry of Defence. Starmer dismissed claims of “dangerously overreliant” dependence on US tech giants like Palantir, but stressed preference for domestic capabilities.

What Does This Mean for Palantir’s Global Contracts?

The New York decision underscores activist success against Palantir’s public sector expansion. While NYC Health + Hospitals insists the partnership posed no patient risks, campaigners link it to broader ethical concerns over AI in sensitive areas.

In the UK, ongoing debates could slow Palantir’s NHS and FCA integrations. As scrutiny intensifies, questions persist about balancing technological efficiency with data privacy in government deals.