CEO DATELINE - Medical groups cut ties with startup accused of fraud
CEO DATELINE - Medical groups cut ties with startup accused of fraud
- November 20, 2017 |
-
Walt Williams
Consider joining CEO Update. Membership gives full access to the latest intelligence on association management, career advancement, compensation trends and networking events, as well as hundreds of listings for senior-level association jobs.
At least four medical groups are ending their partnerships with a Chicago-based startup after allegations surfaced that the company misled advertisers and investors, the news site FierceHealthcare reported Monday.
Outcome Health provides free televisions and tablets to doctor's offices in exchange for running programming and advertisements for medical products. However, a Wall Street Journal investigation concluded the company inflated data about the reach of its advertising to boost ad sales. Investors have since sued the startup for fraud and the company's owners are offering buyouts to employees.
The American Medical Association had previously entered into an agreement with Outcome Health to run association-produced educational material on the company's TVs and tablets free of charge. That agreement ended in October, and AMA says it has no interest in renewing the contract in light of the recent allegations.
"In light of recent unfavorable reports in the media regarding Outcome Health, we requested that all AMA content displayed on any ContextMedia platforms be removed immediately," AMA told FierceHealthcare, referring to Outcome Health by its former business name.
The American Epilepsy Society and CancerCare have also terminated their partnerships with the company, the news site reported. The American Heart Association won't renew its partnership to share educational content once its agreement expires Dec. 1.
At least two other medical groups are reconsidering their partnerships with Outcome Health in light of the fraud allegations. The National Infusion Center Association and American Academy of Dermatology told FierceHealthcare they are reviewing the matter. http://bit.ly/2zlw6Rq
MORE CEO DATELINE
- Gun-control advocates criticize suicide foundation partnership with firearms association
- Associations react to Cordray departure
- NAM campaign targets ‘activist' lawsuits, news media
- Medical, insurance groups decry health care provision in tax bill
- Employer groups call on Congress for immigration action