Legal Fees Have Theranos Running On Financial Fumes As It Settles Latest Lawsuit
The most recently settled case was filed by investors who allege that Theranos made false and misleading statements about its technology. In other news from the health care industry: shopping around for care; health system mergers; and tariffs' effects on vaping.
The Wall Street Journal:
Theranos Settles Investor Suit As Funds Run Low
Theranos Inc., running on financial fumes, settled a suit filed by investors who had alleged they were defrauded by the blood-testing firm. The pact ends a civil case brought by Robert Colman, a former Silicon Valley investment banker, and other plaintiffs who made indirect investments in Theranos, court records filed Friday show. They alleged that Theranos made false and misleading statements about its technology. The company previously reached costly settlements with a major investor and its former retail partner Walgreens Co., and settled civil fraud allegations by the Securities and Exchange Commission in March without admitting or denying wrongdoing. (Weaver, 7/22)
Chicago Tribune:
Why Don't More People Shop For Health Care? Online Tools Exist, But Most Don't Use Them
Most patients don’t pay those charges, instead paying a sum based on rates negotiated between hospitals and health insurance companies. But even after those negotiations, stark differences often remain — disparities that can hit the wallet hard. Though consumers have long bemoaned rising health care costs, few people shop for health care the way they might shop for a car, comparing prices. Some don’t realize a procedure can cost tens of thousands of dollars more at one hospital versus another. Others would rather rely on referrals or don’t know where to go to find information. Hospital prices vary for a number of reasons, including differing overhead costs, market dynamics and, in some hospitals, a need to offset the costs of complex services by billing higher rates for simpler ones. (Schencker, 7/20)
Modern Healthcare:
New Catholic Directives Could Complicate Mergers And Partnerships
A new set of religious directives from the U.S. Conference of Catholic Bishops could make it more complicated for Catholic and non-Catholic health systems to forge merger or partnership deals, even as more systems are entering or exploring such tie-ups. Last month, the bishops overwhelmingly approved the 6th edition of the Ethical and Religious Directives for Catholic Health Care Services, updating a section on collaborative arrangements with non-Catholic organizations whose last version was issued in 2009. (Meyer, 7/19)
Bloomberg:
Vaping Industry Decries Trump's Tariffs Targeting E-Cigarettes
Bryan Robbins smoked for 35 years before vaping helped him quit and prompted him to ditch driving trucks for selling e-cigarettes, first at flea markets and then at his own retail shops in Mississippi. The 52-year-old is a Donald Trump supporter who agrees with the president’s efforts to crack down on China’s trade practices, but it’s hitting close to home. The next round of proposed duties -- 25 percent on $16 billion worth of Chinese imports that could go into effect in a month -- includes vaping devices. Most e-cigarettes are made in China, leaving Robbins and his peers without an alternative. (Niquette and Townsend, 7/20)
