Greg Hale, et al v. ARcare, Inc

Circuit 8Feb 13, 2026

Split Score

SplitScore: 59/100

Case Summary

Disposition

Affirmed

The Eighth Circuit held that ARcare, a federally funded community health center, is not entitled to absolute immunity under the Federally Supported Health Centers Assistance Act for claims stemming from a 2022 data breach that exposed patients' confidential information. Affirming the district court, the panel adopted the Fourth Circuit’s narrow reading of 42 U.S.C. § 233(a), concluding that data security is not a 'medical, surgical, dental, or related function' and therefore the United States cannot be substituted as the defendant under the Federal Tort Claims Act.

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Circuit Split Identified

Legal Issue

Whether the absolute immunity granted under 42 U.S.C. § 233(a) to federally funded community health centers for damages 'resulting from the performance of medical, surgical, dental, or related functions' extends to claims arising from a data breach and failure to safeguard confidential patient information.

Circuit Positions

Circuit 9

§ 233(a) immunity covers data security; a data breach is a 'related function' to providing medical services.

Circuit 4Circuit 8(this circuit)

§ 233(a) immunity does not cover data security; data-breach claims are outside the scope of 'related functions.'

Conflict Summary

The Ninth Circuit (and some district courts) interpret 'related functions' broadly, holding that data-security obligations are sufficiently connected to the practice of medicine to trigger § 233(a) immunity, while the Fourth Circuit—and now the Eighth Circuit—read the term narrowly, limiting immunity to activities directly tied to providing health-care treatment and therefore denying immunity for data-breach claims.

Parties & Counsel

Parties

Appellant:ARcare, Inc.
Appellee:Greg Hale et al. (putative class)