Rishi and Shradha 2

A startup that raised $500 million in May at a $5 billion valuation misled its advertisers, The Wall Street Journal reports.

Chicago-based Outcome Health delivers educational health footage alongside advertisements from pharmaceutical companies to doctors’ offices and waiting rooms. There were more than 50 investors in the May round, including CapitalG, Alphabet’s growth-equity fund; Pritzker Group; Goldman Sachs; and Leerink Transformation Partners.

Outcome Health has said it’s in 40,000 healthcare practices and works with 20% of healthcare providers in the US. By 2020, CEO Rishi Shah said he hoped to be working with 70% of all healthcare providers. The company also has plans to hire 2,000 more employees by 2022.

But according to the report from The Journal, between 2014 and 2016, Outcome charged for more screen installations than it actually performed. Employees reportedly also doctored screenshots that were meant to show that certain ads had run in a particular doctor’s office.

Outcome said in a statement sent to Business Insider:

“Outcome Health exists to activate the best health outcome possible for every person in the world. We are proud of the company we have built, helping doctors and patients make more informed decisions while having high rates of …read more

Source:: Businessinsider – Technology

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