R1 RCM & Dignity Health Resolves Data Breach Lawsuit for $675,000
R1 RCM Inc. and Dignity Health in Henderson, Nevada agreed to settle a class action data breach lawsuit for $675,000. The lawsuit is a result of a data breach that happened at the revenue cycle management firm R1 RCM, which was discovered on November 23, 2023. As per R1 RCM investigation, the hacker had extracted sensitive information, including names, contact details, birth dates, service locations, Social Security numbers, diagnosis details, medical record numbers, and patient account numbers. The data breach report submitted to the HHS Office for Civil Rights indicated that 16,121 people were affected.
On April 5, 2024, the lawsuit filed in the U.S. District Court for the District of Nevada, the Heather Hillbom v. R1 RCM, Inc. and Dignity Health dba Dignity Health lawsuit, claimed that the defendants were negligent when they did not implement acceptable and proper safety measures to protect the privacy of patient information. The defendants did not admit any wrongdoing or liability; nevertheless, the defendants decided to resolve the lawsuit to avoid the expenses and risks related to ongoing litigation.
The terms of the settlement state that class members are eligible to claim three-bureau credit monitoring services and identity theft protection services for two years via CyEx Medical Shield Total. Furthermore, all class members could claim a cash payment, equivalent to an amount after deducting the attorneys’ fees, credit monitoring expenses, settlement administration fees, legal expenses, claims for out-of-pocket expenditures, and service awards from the settlement fund. Class members may submit claims for refund of recorded, unreimbursed, out-of-pocket expenses up to $500. Members may also submit claims for extraordinary out-of-pocket expenses like losses to fraud and identity theft up to $2,500.
The court approved the preliminaries of the settlement. The schedule of the final fairness hearing is November 14, 2025. October 13, 2025 is the last day to file an objection to and exclusion from the settlement. Claims must be submitted on or before November 11, 2025.