What happens if you don't comply: Section 504 enforcement in healthcare

accessiBe Team

In short:

Section 504 enforcement in healthcare operates across three distinct tracks: administrative investigations by HHS's Office for Civil Rights, suspension or termination of federal funding, and private lawsuits filed by individuals. For most healthcare organizations, federal funding — including Medicare and Medicaid reimbursements — represents the majority of revenue, making the funding track the highest-stakes consequence.

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For many healthcare organizations, Section 504 compliance has historically been treated as a low-visibility obligation — something to address reactively when a complaint arrives, rather than proactively as part of ongoing operations.

The 2024 Final Rule changes that calculus. 

By setting an explicit technical standard and a defined deadline, HHS has created a framework in which non-compliance is no longer ambiguous. 

Organizations that have not taken structured steps toward digital accessibility face exposure across three enforcement tracks simultaneously — and the consequences on each track are significant.

Understanding how enforcement actually works is the first step toward managing the risk.

How Section 504 enforcement works 

Section 504 enforcement in healthcare is administered primarily by the HHS Office for Civil Rights (OCR). Under 45 C.F.R. § 84.98, OCR's enforcement framework largely mirrors the procedures established under Title VI of the Civil Rights Act — a framework built around investigation, voluntary compliance, and escalating consequences for organizations that fail to respond.

What distinguishes Section 504 enforcement from many other compliance regimes is that OCR does not need to wait for a formal complaint to open an investigation.

OCR can initiate a compliance review proactively, based on its own assessment of risk or patterns it observes across the sector.

In other words, your organization does not need to have received a patient complaint to find itself under investigation. 

Once OCR opens a review, how it resolves depends largely on what documentation the organization can produce.

The three enforcement tracks

Non-compliance with Section 504 can trigger consequences across three distinct channels:

  • Track 1 — OCR administrative enforcement: HHS's Office for Civil Rights investigates complaints and can open proactive compliance reviews. The escalation pathway runs from voluntary resolution through DOJ referral and, in the most serious cases, fund termination.
  • Track 2 — Federal funding loss: OCR has authority to suspend or terminate federal financial assistance — including Medicare and Medicaid reimbursements — for organizations found to be in violation. For most healthcare organizations, this is the highest-stakes consequence.
  • Track 3 — Private litigation: Section 504 provides individuals with a private right of action. Patients can file federal lawsuits directly, without going through OCR first. The 2024 Final Rule strengthens this track by giving plaintiffs an explicit technical standard to point to.

Importantly, these tracks are not mutually exclusive. An organization can face all three simultaneously

Let’s break down each track in further detail:

Track 1: OCR administrative enforcement 

When OCR receives a complaint or opens a compliance review, it follows a clear escalation process:

Step 1 — Investigation: OCR notifies your organization and asks for documentation. This is where the paper trail matters most. Organizations that can produce a scope inventory, audit findings, a remediation plan, and vendor correspondence are in a much stronger position than those who cannot.

Step 2 — Voluntary compliance: OCR's first goal is usually to bring your organization into compliance without formal action. If the documentation shows good-faith effort, OCR will typically negotiate a resolution agreement — a written commitment to fix specific issues within agreed timelines. Most investigations end here.

Step 3 — Referral to the Department of Justice: If your organization doesn't cooperate or can't reach a resolution, OCR can refer the case to the DOJ. This is less common, but it significantly raises both the legal stakes and the reputational risk.

Step 4 — Fund termination: In the most serious cases, OCR can move to terminate your organization's federal financial assistance. This step is typically reserved for organizations that refuse to engage with the process at all.

The bottom line: OCR's process is designed to give organizations a chance to show they are doing the work. If you can demonstrate that, most investigations resolve at the voluntary compliance stage.

Track 2: Federal funding loss

For most healthcare organizations, this is the enforcement track that gets the attention of finance teams and executive leadership — and for good reason.

Section 504 applies to organizations that receive federal financial assistance from HHS. For hospitals, health systems, physician practices, FQHCs, behavioral health providers, and home health agencies, that assistance flows primarily through Medicare and Medicaid reimbursements. In many cases, federal reimbursements represent the majority of an organization's revenue.

OCR has authority to suspend, terminate, or refuse to grant federal financial assistance to organizations found to be in violation of Section 504. 

A formal hearing process is required before any funding action is taken — but the authority exists, and OCR can exercise it.

For most healthcare organizations, the threat of Medicare and Medicaid funding disruption is not theoretical. It is the consequence that gives Section 504 enforcement its teeth in the healthcare sector in a way it simply doesn't in others.

The takeaway for finance and executive leadership: digital accessibility is not just a compliance department issue. It is a revenue protection issue.

Track 3: Private litigation

Section 504 provides individuals with a private right of action. 

This means that patients, prospective patients, or program participants can file federal lawsuits against your organization directly, without going through OCR first.

This track has always existed under Section 504. What the 2024 Final Rule changes is how easy it is to use:

Before the rule, plaintiffs in digital accessibility cases against healthcare organizations had to argue what "accessible" meant — a standard that varied by case and was difficult to define. 

Now, WCAG 2.1 Level AA provides a clear, measurable benchmark. 

If a patient portal fails specific WCAG 2.1 AA criteria — unlabeled form fields, inaccessible scheduling flows, documents a screen reader cannot parse — those failures are concrete, documentable, and actionable in court.

What this means in practice:

  • A defined standard creates a defined target. Accessibility failures are no longer a matter of interpretation. They can be identified, documented, and presented as evidence.
  • No OCR complaint is required. A patient who encounters an inaccessible system can go straight to federal court.
  • Litigation and OCR enforcement can run simultaneously. A single accessibility complaint can trigger both an OCR investigation and a private lawsuit at the same time.

Organizations that have not conducted a WCAG 2.1 AA audit of their patient-facing digital environment are operating without visibility into what a plaintiff — or a plaintiff's expert — might find.

What defensible progress looks like to the HHS Office for Civil Rights (OCR) 

The HHS Office for Civil Rights (OCR) enforcement framework is not built around achieving perfection by a deadline. It is built around demonstrating that your organization has taken its obligation seriously — that digital accessibility is being managed as a structured, ongoing program rather than ignored or deferred.

When OCR opens a review, the organizations in the strongest position are those that can show their work. That means having documentation ready across several areas:

A designated responsible employee

For organizations with 15 or more employees, this is a rule requirement. A named individual with a documented oversight role signals that accountability has been assigned at an operational level — not just acknowledged in principle.

A documented scope inventory

A systematic record of which digital properties are in scope — your website, patient portal, scheduling tool, telehealth interface, documents — and how you have prioritized remediation demonstrates the structured approach OCR expects to see.

Audit findings on file

A WCAG 2.1 AA audit, even one that surfaces significant gaps, is evidence of engagement. It shows your organization viewed its digital environment through the right lens and understands where it stands. No audit on file is far more damaging than an audit with findings.

A remediation plan with owners and timelines

Documentation that assigns responsibility for specific fixes and sets realistic timelines shows that accessibility is being treated as a managed program — not a one-time project.

Vendor correspondence

Emails, contract terms, or VPAT requests showing that you have engaged your third-party vendors on accessibility demonstrate active oversight of your full digital ecosystem — not just the systems you directly control.

Grievance procedures

For organizations with 15 or more employees, documented procedures that give patients a clear process for reporting accessibility barriers are a rule requirement — and a visible signal of good-faith operation.

The thread running through all of these is documentation. 

When OCR investigates, it is evaluating whether your organization can show reasoned, intentional, structured effort. That demonstration is built from records, not from memory.

Why compliance requires more than a single solution 

When a compliance deadline is approaching, the instinct is often to look for a fast, centralized fix — one tool that covers the obligation and reduces immediate risk. That instinct is understandable, but Section 504 compliance doesn't work that way.

Digital accessibility in a healthcare environment spans a wide range of systems — public websites, patient portals, scheduling tools, telehealth interfaces, documents, and third-party platforms.

Different types of barriers require different types of solutions. 

Automated tools can address a significant range of issues across public-facing web environments and provide meaningful, ongoing coverage — but they work best as part of a broader program that also includes manual auditing, developer-level remediation, and vendor oversight.

A few specific limitations worth understanding:

  1. Automated tools alone are not sufficient for WCAG 2.1 Level AA conformance. Automated solutions — including AI-powered remediation tools — can identify and address a wide range of accessibility barriers efficiently and at scale. However, certain criteria under WCAG 2.1 AA require human judgment to evaluate and fix: the accuracy of alternative text, the logic of reading order, the usability of complex interactive components. A complete compliance program combines automated coverage with manual review.
  2. Vendor-provided assurances are not a substitute for verified conformance. A vendor's claim that their platform is "WCAG compliant" does not transfer liability under Section 504. Your organization remains responsible for the accessibility of third-party platforms provided to patients. Documented evidence of conformance — such as a current Accessibility Conformance Report (ACR) based on genuine testing — is what a defensible position requires.
  3. Phone workarounds are explicitly insufficient. As covered in What Section 504 actually requires from healthcare organizations, the primary digital pathway must be accessible. Offering an alternative channel does not remedy an inaccessible system.

The goal is not to find a single shortcut. It is to build a program that can demonstrate structured, genuine progress across your full digital environment.

How accessiBe helps healthcare organizations prepare 

Building a defensible Section 504 compliance program requires more than patching visible gaps. It requires structured auditing, accurate documentation, and ongoing oversight across a complex digital environment.

accessiBe provides an end-to-end accessibility platform combining AI automation, human expertise, and developer tools — supporting healthcare organizations across three core areas:

  • Expert audits and VPAT documentation — manual accessibility testing against WCAG 2.1 AA, producing the Accessibility Conformance Reports (ACRs) that form the foundation of a defensible compliance record
  • AI-powered remediation — continuous, automated coverage across public-facing web environments, addressing common accessibility barriers at scale as content changes
  • Source code accessibility — developer-level visibility into WCAG issues across websites, portals, and digital services, with the tracking capability needed to document ongoing progress

Together, these capabilities support the kind of layered, documented compliance program that Section 504 requires — and that OCR expects to see.

If your organization is preparing for the May 2026 deadline, our Section 504 specialists can review your current approach and help identify practical next steps.

Press here for a one-on-one demo with an accessibility expert, to find a plan that best fits your needs ->