Outcome Health Screen Fraud
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A story about a healthcare advertising company called Outcome Health that committed fraud by billing pharmaceutical companies for TV ads that weren't actually being displayed.
"There was this company called Outcome Health started by a guy named Rishi in Chicago. He was like this wonder kid prodigy who raised money at a 5 or 10 billion dollar valuation. Their business model was putting TVs in doctor's offices - touchscreen TVs that were free for doctors and could display patient charts and medical information. When not being used for medical purposes, they'd show pharmaceutical ads.
The pharmaceutical companies would go to Outcome Health and say 'Here's the 50,000 doctors we're trying to reach, show me which offices you have TVs in.' They claimed to be making $160 million in pharmaceutical ads by their fourth year.
But here's where the fraud happened: Johnson & Johnson executives and their ad salespeople would go to these doctors and discover there weren't actually any TVs there. Outcome Health was billing J&J for showing ads like Cialis, but the TVs didn't exist - they just thought no one would check.
The company was eventually acquired by another company who's now running it legitimately, making over $100 million from pharmaceutical ads on these screens. But the original founder's claims were nonsense and he got sued."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.