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Morning Briefing

Summaries of health policy coverage from major news organizations

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Tuesday, Feb 25 2025

Full Issue

Elizabeth Holmes’ Blood-Testing Fraud Conviction Upheld By Appeals Court

She claimed that her company, Theranos, could run accurate and fast tests from blood drawn from a finger prick. She was convicted of fraud in 2022, and the ruling was upheld Monday by a federal appeals court. Also in the news: hospital security, UnitedHealth, Pfizer, BGR Group, and more.

A federal appeals court on Monday upheld the fraud convictions, 11-year prison sentence and $452 million restitution order against Elizabeth Holmes, founder of the blood-testing company Theranos, for falsely claiming revolutionary technology that could conduct hundreds of lab tests from a few drops of blood. Holmes and her then-boyfriend, Ramesh “Sonny” Balwani, Theranos’ president and chief operating officer, were convicted in separate trials in 2022 of deceiving investors and the public about the capabilities of their blood-testing equipment. Holmes was convicted of four counts of fraud, while Balwani was convicted of 12 felony charges and sentenced to nearly 13 years in prison. (Egelko, 2/24)

In other health industry news —

Clinicians, medical groups and unions have been vocal about rising workplace violence against employees. A 2023 survey from National Nurses United found more than 80% of nurses had experienced workplace violence, ranging from bites and punches to racist remarks and sexual harassment. ... Hospitals have varying levels of security based on the location, patient population and services they provide, said Paul Sarnese, owner of Secured & Prepared Consulting. He said more hospitals are arming their security officers and installing metal detectors to monitor for weapons.(Hudson, 2/24)

Beyond public relations concerns, the company is facing potential shareholder lawsuits and multiple government investigations, including a Department of Justice antitrust probe focused on how it uses its physician workforce to benefit its insurance business. While it largely remains in a defensive crouch, UnitedHealth has begun pushing back, enlisting libel attorneys to go after critics on social media, attempting to squelch dissent from shareholders, and publicly blaming hospitals and drug companies for high prices. It is also moving to align itself with the new Trump administration. (Bannow, Herman, Ross and Lawrence, 2/25)

The former head of the Food and Drug Administration’s (FDA) drug division is joining Pfizer as its chief medical officer, the company announced Monday. Patrizia Cavazzoni was formerly director of the FDA’s Center for Drug Evaluation and Research (CDER) from 2020 until January, when she resigned just ahead of President Trump’s return to office. Cavazzoni previously worked at Pfizer prior to joining the FDA in 2018. (Weixel, 2/24)

A group of health care investors have launched a new advocacy coalition that aims to promote responsible private investment in health care, according to a press release shared with PI. The group, Association for Responsible Healthcare Investment, has signed on with BGR Group. (Long, 2/24)

The tiny number of Indigenous students in U.S. medical schools has long been a concern, but Native American medical leaders were taken aback to see 22% fewer American Indian or Alaska Native students had enrolled last year when numbers were released in January. (McFarling, 2/25)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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