US News sues San Francisco over hospital rankings dispute

U.S. News & World Report is suing San Francisco's top attorney over subpoenas seeking documents and information relating to its rankings of hospitals, according to court documents accessed by Becker's.

David Chiu, San Francisco's city attorney, issued two subpoenas to the media company on Jan. 9. The subpoenas ask U.S. News to "[d]escribe [U.S. News'] basis for not including measures of health equity in its rankings of adult Hospitals"; "[d]escribe how, if at all, [U.S. News] has incorporated primary and preventive care in each annual version of the Best Hospitals rankings"; and "[d]escribe [U.S. News'] basis for believing that Medicare outcomes information from at least 18 months ago accurately reflects current hospital outcomes," according to the lawsuit. 

The Los Angeles Times reported that Mr. Chiu also demanded that the media company provide internal business records relating to its rankings process and whether U.S. News' financial relationships with hospitals factor in.

The media company responded in a lawsuit filed Jan. 23 in the U.S. District Court for the Northern District of California. The lawsuit argues that the subpoenas are unconstitutional and violate the 1st Amendment, as well as California's Reporters' Shield Laws.

"We believe the complaint speaks for itself," U.S. News said in a statement shared with Becker's. "The journalism that we undertake, including our rankings and the research we conduct, are entitled to the full protection of the 1st Amendment, which serves all news organizations. 

"We stand behind our journalism as a valuable and reliable resource for individuals and families making critical decisions about their lives, and will not allow the important, unbiased work of our journalists — indeed, all journalists — to be censored by the government."

The media company's lawsuit follows a letter Mr. Chiu sent to U.S. News June 20 questioning the legality of the rankings and requesting information including details on payments the media outlet receives from hospitals. 

"Consumers use these rankings to make consequential healthcare decisions, and yet there is little understanding that the rankings are fraught and that U.S. News has financial relationships with the hospitals it ranks," Mr. Chiu said in a news release issued from his office at the time. 

"The hospital rankings appear to be biased towards providing treatment for wealthy, white patients, to the detriment of poorer, sicker, or more diverse populations. Perverse incentives in the rankings risk warping our healthcare system," Mr. Chiu said. "Hospitals are treating to the test by investing in specialties that rack up the most points rather than in primary care or other worthy specialties."

According to the Times, the media company subsequently sent a letter in response, saying Mr. Chiu's claims are "misplaced" and defending its rankings process.

Regarding the lawsuit filed this month, Mr. Chiu shared the following statement with the Times: "It's ironic that U.S. News claims its speech has been chilled, when the purpose of the company's lawsuit is to chill and impede a legitimate government investigation of potential unlawful business practices.

"Despite U.S. News' stated commitment to transparency, the company has spent months evading tough questions about its undisclosed financial links to the hospitals it ranks. This lawsuit is yet another baseless attempt to avoid these questions and a waste of judicial resources. U.S. News is not above the law, and its bullying litigation tactics will not deter us from standing up for patients and consumers."

The city's legal battle with U.S. News follows scrutiny over the last year from law schools, medical schools and some health systems. More than a dozen medical schools withdrew their cooperation from the premier ranking, beginning with Boston-based Harvard Medical School in January 2023.

U.S. News is asking the court to block Mr. Chiu's subpoenas, among other asks.

Read the full Times report here





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