Anyone wanting to take a swipe at their compliance department should pay close attention to Theranos. This once high-flying unicorn is getting hammered.
For those not aware. Theranos (with a reported private valuation of $9 billion), publicly stated that their only product, which has been used to diagnose conditions and inform treatments for patients, doesn’t work.
The company told the Centers for Medicare and Medicaid Services that it issued tens of thousands of corrected blood-test reports to doctors and patients, voiding some results and revising others. (GULP)
That sounds awfully serious, doctors may have made health decisions with erroneous results.
A brief google search does not uncover the poor schlub responsible for compliance at Theranos. My guess is (and it’s just a guess) that there was not a lot of emphasis placed on compliance in this organization.
Good compliance both builds and preserves value…I wonder how those private investors who got in recently are feeling about compliance today.