California Patients Sue Sutter Health and MemorialCare Over Undisclosed AI Recording of Medical Visits

Patients at Sutter Health and MemorialCare facilities filed a proposed class-action lawsuit on April 9, 2026, alleging that medical staff used an AI transcription tool called Abridge to record confidential doctor-patient conversations without their knowledge or consent. The plaintiffs claim they were not informed that their medical discussions would be captured, transmitted outside clinical settings, and processed by third-party systems.

The lawsuit was filed in federal court in San Francisco and names both Sutter Health and MemorialCare as defendants. According to the complaint, plaintiffs received care at various facilities operated by these two health systems within the past six months. During those visits, staff activated Abridge AI, a software platform that captures, transcribes, and summarizes conversations between patients and doctors to generate clinical notes.

The complaint states that the recorded communications contained "individually identifiable medical information, including medical histories, symptoms, diagnoses, medications, treatment discussions, and other sensitive health disclosures." Plaintiffs allege they received no clear notice that their conversations would be recorded by an artificial intelligence platform or transmitted offsite for processing.

Abridge AI, valued at $5.3 billion as of June 2025, has been rapidly deployed across major U.S. health systems including Kaiser Permanente, the Mayo Clinic, and Duke Health. Sutter Health began using the platform two years ago. A Sutter Health spokesperson said the company "takes patient privacy seriously" and that technology in clinical settings is "carefully evaluated and implemented in accordance with applicable laws and regulations." MemorialCare declined to comment on the pending litigation. Abridge did not immediately respond to requests for comment.

Context

California has strict wiretapping and recording consent laws. State law generally requires all parties to a conversation to consent before it can be recorded, a standard stricter than federal law, which permits recording if one party consents. The lawsuit invokes both state and federal privacy protections, suggesting plaintiffs argue the recording violated California's two-party consent requirement and federal Health Insurance Portability and Accountability Act (HIPAA) standards.

The use of AI transcription tools in healthcare has expanded in recent years. These systems promise to reduce physician documentation burden and improve clinical efficiency. However, the deployment has raised questions about patient consent, data security, and whether patients are adequately informed when their conversations are processed by third-party AI systems rather than remaining within the healthcare provider's direct control.

What's Next

The lawsuit will likely hinge on whether Sutter Health and MemorialCare provided adequate notice to patients about Abridge's use and whether patients could opt out of recording. If the class action proceeds, it could establish precedent for how health systems must disclose AI transcription tools to patients and could influence adoption policies at other providers currently using or considering Abridge. The case may also prompt regulatory scrutiny of AI deployment practices in healthcare settings and whether current consent frameworks adequately address third-party data processing.