Sorry, where? Maybe I've missed something, but the article is just about their health business growing in New York rather than an illegal data backdoors?

There's no evidence it's just speculation. Microsoft has a contract with the same exact orgs. So does AWS. Anyone with a little bit of common sense would know that. Palantir's CEO and Peter Thiel are not particularly well liked so presumably people are speculating without any evidence at all. Could there be an issue? Yes, absolutely but not just with Palantir but let's not let facts get in the way of a narrative. In any event I think the question of data being shared with the government could be a problem even if the software was made in house and then open sourced by the hospital (which is itself ridiculous to expect but this is HN) because the hospital themselves could provide the data to the government. At this point someone might say "no that won't happen because hospitals are nice and Palantir is evil" or "there are laws" but I am not sure why Palantir would be exempt unless anyone has proof or anything besides a vibes based argument but then we're back to square one.