NY Appellate Court Limits PSQIA Privilege in Landmark Healthcare Case
New York's Appellate Division has denied PSQIA privilege for the first time in Adams v. Bassett Healthcare.
Why it matters: The ruling sets precedent for how medical safety records may be used in litigation, forcing healthcare legal and compliance teams to scrutinize processes for shielding sensitive materials under both federal and state law.
- On April 30, 2026, the Appellate Division, Third Department, ruled in Adams v. Bassett Healthcare Network.
- The decision marks New York’s first appellate interpretation of federal PSQIA privilege protections.
- The court found Bassett Healthcare failed to show key documents were reviewed by a Patient Safety Organization (PSO).
- State privilege under Education Law 6527(3) was also denied for lack of evidence they were used by a quality assurance committee.
The New York Appellate Division, Third Department delivered a first-of-its-kind ruling on the Patient Safety and Quality Improvement Act (PSQIA) privilege on April 30, 2026. In Adams v. Bassett Healthcare Network, the court directed the disclosure of RL6 reports—documents related to patient safety—that the defendant claimed were federally protected from litigation discovery.
The court’s opinion underscores the need for healthcare providers to clearly document that records were both submitted to—and reviewed by—a recognized Patient Safety Organization (PSO) to claim federal privilege protections. As the court stated, “Defendant failed to demonstrate that the RL6 reports at issue constitute privileged patient safety work product.”
- The ruling also addressed state law, denying Education Law 6527(3) privilege after finding no evidence these documents were used by Bassett’s quality assurance committee.
- The PSQIA, enacted in 2005, was designed to keep certain patient safety work product confidential to encourage the sharing and reporting of adverse events. This decision clarifies that privilege is not automatic—providers must meet strict requirements.
This decision guides New York healthcare legal teams on evidentiary privilege boundaries, increasing the importance of compliance with both federal and state protocols when seeking to shield safety-related materials from litigation exposure.
By the numbers:
- April 30, 2026 — Date of Appellate Division decision
- 1st — New York appellate ruling interpreting PSQIA privilege
- 2 — Privilege claims denied: both federal PSQIA and state Education Law 6527(3)