Practice Fusion admitted to encouraging its doctors to prescribe opiates, and was fined $145 million.The company sold to Allscripts in 2018 for $100 million, after raising more than $150 million in venture capital.In the middle of the opiate crisis, a Silicon Valley start-up called Practice Fusion saw an opportunity.
The company developed an electronic medical record system for doctors. Instead of charging for the software, like its competitors, the company generated the bulk of its revenue by advertising to doctors.
Specifically, Practice Fusion solicited a payment of nearly $1 million from an opioid company to create an alert that would would encourage doctors to prescribe more extended release opioids, while in the room with a patient. These alerts are known in the industry as "clinical decision support," and are intended to guide doctors to the most appropriate care., a larger company in the space, agreed to pay $145 million in fines to resolve criminal and civil charges. That includes $113.
Practice Fusion was once a darling of the burgeoning health-tech industry. The business was doing so well in 2015 that the New York Times
cc: ReshmaKhilnani - wild.
chrissyfarr El Chapo would be impressed.
Ha of course 😂 'Once the company sold, most employees got nothing while the company’s executives walked away with millions of dollars in a pre-arranged carve-out'
Which major opioid company was it? 'As part of the criminal resolution, Practice Fusion admits that it solicited and received kickbacks from a major opioid company'
All in the name of creating value for investors tho... so it’s fine