Former VA EHRM executive director Federally charged with accepting vendor cash and gifts, making false statements

April 3, 2026 | by

Not knighted, but indicted. The former executive director of the VA’s Office of EHR Modernization (OEHRM) from 2017 to 2021, John H. Windom, was charged with failing to disclose cash and gifts from vendors, then making false statements to investigators in failing to report those gifts. The three counts were brought by a grand jury in the Federal District Court for the District of Columbia on 25 March. They were originally sworn in on 30 October 2025.

According to the Department of Justice (DOJ), the charges carry a statutory maximum sentence of 20 years in prison, with false statements adding another five years maximum per charge and possible financial penalties. The three counts involve violations of United States Code (USC) Title 18, Sections 1001 and 1519.

As executive director for the OEHRM, Mr. Windom was responsible for leading the long-term vision, strategic management, technical direction, acquisition, and deployment of the Cerner EHR in the VA that was announced in June 2017 and awarded in May 2028. He is being charged with accepting and soliciting gifts and cash from a group of VA contractors and subcontractors he termed the “Power Group”, then failing to disclose them according to law. This group included eight persons in seven independent minority-owned contractor companies in IT and health IT services and technology, management consulting, diversity and inclusion work, project management, business development, and general support services. Two companies were prime contractors directly on the VA EHRM project and overseen by Mr. Windom. 

He is accused of flagrantly accepting and demanding cash and gifts from the contractors, including meals, drinks, entertainment, casino chips from the MGM National Harbor and Aria Las Vegas, and gift cards for Louis Vuitton luggage totalling over $15,600. His demands from individuals and interactions with them are extensively detailed in the indictment. Mr. Windom also failed to report gifts on standard VA forms, and denied the gifts to Federal law enforcement officials interviewing him twice in 2021. In 2024, when interviewed again, Mr. Windom admitted accepting chips. The gift acceptances from vendors with clear conflicts of interest and failures to report, including on his required annual public financial disclosure form, were violations of established Federal ethics laws and regulations restricting gifts. 

According to the indictment, he also pressured the vendors to make business decisions unrelated to the EHRM that advanced certain personal diversity objectives and then demanded to be rewarded. He also threatened this Power Group with economic and reputational harm, particularly but not only related to his diversity networking expectations (General Allegations, point 14).

John Windom, aged 64, has an interesting background. He joined the VA in September 2017 after retiring from service as a Navy Captain. While in the Navy, he had direct experience of the Cerner EHR implementation at the Department of Defense (DoD) as a program manager for their Defense Healthcare Management System Modernization Program. His 2017 appointment as executive director of the OEHRM replaced Genevieve Morris, interim chief health information officer, who had moved from ONC in July but resigned almost immediately in August citing a change in direction (MedCityNews). He became a three-year Limited Term Senior Executive Service (SES) member, a prestigious status in the Federal Government. As OEHRM ED, he reported to the Deputy Secretary of the VA and shifted after the May 2018 selection to onboarding the Cerner EHR. He became a career SES in July 2020. His Federal biography for Congress from this time is here. Mr. Windom was reassigned from OEHRM in April 2022, moving to deputy director of the Federal Electronic Health Management Office, a joint DoD-VA initiative to support the delivery of a single, integrated EHR.  It is not clear where or if he is currently employed. 

US Attorney for the District of Columbia Jeanine Pirro said in the DOJ release “As alleged, the defendant exploited his senior position for personal gain and concealed gifts and financial relationships that created serious conflicts of interest in the health care of our nation’s veterans. Such conduct is not only a betrayal of the public trust—it undermines confidence in the institutions dedicated to serving those who have sacrificed for this country.” The case is being investigated by the US Attorney’s Office for the District of Columbia, the FBI Washington Field Office, and the Veterans Affairs Office of the Inspector General (OIG). It is being prosecuted by Assistant US Attorney Emily Miller. No timeline for the start of the trial was announced.

None of this seems to have directly involved Cerner, now Oracle Health, per the indictment. But in this Editor’s opinion, because of Mr. Windom’s role in the selection of the Cerner EHR and the disastrous implementation of VA Mann-Grandstaff (VISN 20) in October 2020 and four more in 2022, all terminated in 2023, Oracle would be unwise to not prepare for a few questions about Cerner’s relationship with Mr. Windom. 

Both Senate and House VA committee chairs are highly concerned about this indictment. Apparently, it will not delay (and reasonably should not) the scheduled rollout of the 13 VA locations starting this month [TTA 8 Feb].

News sources include Federal News Network, Healthcare IT News, and Military Times.

TTA is Hopping: Oracle’s 30,000 layoffs, Teladoc’s shareholder challenge, OpenAI’s $122B raise, eMed’s $200M, more

April 3, 2026 | by

2 April 2026

For what is usually a quiet week, it hopped like the Easter Bunny chased by Elmer Fudd. The big news was Oracle finally announcing their largest global layoff ever, certainly affecting Oracle Health. Teladoc got an Easter Egg labeled “Unlock The Value!” from activist shareholder, Pineal Capital Management. OpenAI raised $122 billion, eMed $200 million with Tom Brady’s help. More deals next week.

We wish our readers a good Passover and Blessed Easter! 

Please feel free to comment on the articles and pass along this Alert. Let me know if this is worth it to you!

Teladoc faces activist shareholder challenge, demanding $200M stock buyback, business spinoffs, cost cuts

A study in contrasts: OpenAI raises $122B, eMed’s $200M Series A. Then there’s Avo’s $10M Series A, Stedi’s $50M Series C. And Oracle expands Nashville campus!

The Oracle shoe dropped: Oracle lays off 18%–20-30K–of global employees, in their largest ever layoff (Updated 2 Apr)

Last Week’s Hot News, including a Perspectives

Chutes and Ladders: UnitedHealth sued by faith-based investor group, Qualified Health raises $125M, Cerebral acquires Inflow ADHD app, Flourish Care’s $5.7M seed

‘AI doctor’ Doctronic raises $40M Series B, but faces controversy on autonomous Rx renewals in Utah and effectiveness claims

Drafted House bill may threaten VA/Oracle EHRM rollout

News roundup: Microsoft debuts a rebooted Copilot Health, Stryker whacked by Iranian cyberattack, Amazon buys Rivr robotics for delivery, Turquoise Health’s $40M raise, Verily raises $300M to shake off Alphabet control

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Teladoc faces activist shareholder challenge, demanding $200M stock buyback, business spinoffs, cost cuts

April 3, 2026 | by | 2 Comments

Languishing Teladoc faces activist shareholder as Q1 reporting nears. Pineal Capital Management, a Dublin, Ireland-based investment firm, issued on Tuesday an open letter to Teladoc’s board, management, and fellow shareholders. The letter publicly revealed their differences with management on the disconnect between the present low value of the stock (TDOC is trading in the $5 range), advocating unlocking what they term ‘the true embedded value of the business and significantly misprices its positive, longer-term prospects.”

While Pineal positioned Teladoc’s current situation as the global leader in virtual healthcare with a 100 million member base, it blamed the company’s “distressed-level valuation” — trading at 4.18 times enterprise value to EBITDA — on multiple management mistakes. These began with the 2020 acquisition of Livongo (a near-fatal self-inflicted error) and now extend to capital spent on bolt-on acquisitions proven to be not accretive to revenue at present, no presentation to shareholders of a multi-year business plan by management to increase share price (down 90% from pre-COVID highs), and share dilution through too many shares outstanding–177 million at present from 90 million in 2020. 

Pineal’s remedy list is not unexpected and cuts straight to the chase:

  • Increasing cost efficiencies, primarily additional cost cutting. 
  • A share buyback up to $200 million to reduce dilution. 
  • Exploring a break-up of the two core businesses – Integrated Care and BetterHelp – into separate entities, via a sale or spin-off transaction.

It believes that Teladoc has plenty of upside due to expanding reimbursement for virtual healthcare, lower out of pocket costs (including permanent first-dollar coverage in high-deductible health care plans and two rural health support programs), their launch of their new 24/7 Virtual Care Platform, a shift for BetterHelp’s behavioral telehealth to an insurance-based payer model boosting conversion and lifetime value–expected to grow to a $100 million run rate in 2026, and international expansion, the real boost for BetterHelp. (This Editor notes that the ‘bolt-on’ acquisition of UpLift was a part of BetterHelp’s conversion to a payer model–see below.)

BetterHelp is Pineal’s primary focus in the letter as the ‘crown jewel’ versus the older Integrated Care platform. Pineal notes the recent $835 million acquisition by UHS of Talkspace, another telementalhealth provider with a checkered track record, as an argument for a BetterHelp  spinoff or sale. 

The ‘or else’, always a part of these activist challenges, is concern “that continued inaction risks a private-market bid at a level well below true intrinsic value”, poison to major shareholders.

Pineal owns TDOC shares through its Pineal Capital Fund 1. The number of shares was not disclosed nor is known through filings in Ireland or the open letter.

What this all means. Or could mean.

Teladoc’s 2025 was flat versus the prior year–retrospectively an improvement versus the bloodlettings of prior years. But their 2026 projection was also flat. In 2025, BetterHelp, their behavioral telehealth unit, fell 9% year over year to $950.4 million in revenue. In reporting 2025 results, Teladoc announced that the Integrated Care business would move from subscription models to visit-based revenue to compensate for enrollment reductions at some client health plans in government programs and reductions in ACA subsidies.

It’s a mystery why Pineal sees BetterHelp as a ‘crown jewel’ when for 2026, Teladoc is projecting a 7% revenue reduction. This Editor has not forgotten that BetterHelp was also seen by former CEO Jason Gorevic (exited 2024) as the future of the company. In May 2025, Teladoc added insurance coverage to primarily DTC BetterHelp by acquiring UpLift for $30 million.

There have been some gains in the share price (about 6%) but it closed today slightly down at $5.28. Stock analyst Zachs isn’t exactly bullish on Q1 results to be reported on 29 April. Revenue projections are down 2.71% to $612.3 million versus Q1 2025, with EPS down $0.3, a 58% drop versus Q1 2025. The year looks equally down with revenue of $2.51 billion, essentially flat to down -0.81%. Yahoo Finance

But…there’s more, just like the direct response commercials.

A further analysis in Bitget shows that total institutional holdings in Teladoc declined by 29.4%. CEO Chuck Divita sold 27,731 shares on 11 March, reducing his direct stake by 7% to roughly $2 million. Yet for some reason, investor Ray Dalio through his firm Bridgewater Associates has been buying on dips, notably increasing its Teladoc stake by 151,000 shares or 31.2% in Q4 2025. However, this can be attributed to speculation to salvage a small (.01%) but underwater position. 

It is clear that Pineal is pushing for a greater valuation of Teladoc shares, as well as a buyback that would bolster their fund’s cash position. It’s an educated guess, but they are not going to be alone among the battered shareholders, either. Watch for another shoe drop around the Q1 earnings report on 29 April.

Coverage from Reuters, Investing.com, 

A study in contrasts: OpenAI raises $122B, eMed’s $200M Series A. Then there’s Avo’s $10M Series A, Stedi’s $50M Series C. And Oracle expands Nashville campus!

April 2, 2026 | by

Your Editor is feeling a little whipsawed this usually quiet pre-Easter and Passover week. We opened with 30,000 Oracle employees losing their jobs. Yet even if Oracle can’t get it, there’s plenty of money out there that’s looking for an investment home. Some rounds are huge–if it’s AI or GLP-1, you can bet on BIG–but most fundings for startups and early stage companies are modest in a pre-2019 way. The money that’s out there lines up for ‘sure things’.

OpenAI had no problem raising $122 billion as it moves to conquer the AI World (and maybe the Universe) via ChatGPT. Considering their claim that they are generating $2 billion in revenue per month, just replace the millions raised in the earlier digital age with billions. There’s a laundry list of investors including institutions, individual investors via banks, plus exchange-traded funds managed by ARK Invest. The anchor investors are strategic partners Amazon, NVIDIA, and SoftBank, with continued participation from Microsoft. SoftBank co-led the round alongside a16z, D. E. Shaw Ventures, MGX, TPG, and accounts advised by T. Rowe Price Associates. The release notes leadership in consumer AI and growth in enterprise AI; as noted here, in January OpenAI debuted ChatGPT for Healthcare (enterprise) and put into test ChatGPT for Health (consumer).

At a ‘virtual VC conference’ earlier this week, one investor panelist estimated that 14% of venture capital funding in 2025 went to exactly two companies, OpenAI and Anthropic (Claude). That disproportion rings alarm bells to this Editor, who well remembers the ludicrous dot-com boom/bust, and even earlier the insane financing that went into (mostly failed) airlines during deregulation–including the airline she worked for.

Another healthcare segment that hasn’t had much problem raising funds is e-prescribing of GLP-1 drugs. Miami-based eMed raised $200 million in its Series A, bringing its valuation to over $2 billion. Fronted by NFL quarterback legend Tom Brady, recently named founding chief wellness officer who is also an investor, the round was led by earlier investor AON Consulting with the addition of a starry roster of individual investors noted in their brief release. eMed’s eRx is marketed both to individuals and employers; the fresh funding will support further development of its agentic AI platform plus a new capitated model “designed to help employers bend the healthcare cost curve”. This Editor notes the lede in most articles about eMed is Brady and the $2 billion valuation; as our Readers know, the latter is a subjective and oft-inflated estimate of market value especially at this early stage. TTA dug into eMed and some of the company’s interesting history, crossing over into Ali Parsa and Babylon Health, here.  Reuters, FierceHealthcare, Mobihealthnews

Moving back into reality, Avo, a NYC-based clinical AI information platform, raised a $10 million Series A. Avo’s calling card is bringing together EHR, revenue cycle including payer, patient data, and knowledge bases to streamline use at the point of care. Funders were led by Noro-Moseley Partners, with participation from existing investors AlleyCorp, Las Olas Venture Capital, MedMountain Ventures, Epsilon Health, and new investor Scrub Capital. Avo has a solid roster of customers that include Geisinger, Mass General Brigham, and local providers such as Englewood (NJ) Health. They also have an intriguing feature: an ambient listening copilot that references patient data and generates documentation that improves revenue cycle. Release

Stedi’s Series C is typical in this hard-raise market in both level and number of investors, with a bit of a twist. The $50 million raised brings their total to $142 million, and will be used to expand its product presence and scale infrastructure. Denver-based Stedi’s calling card is an API-first and cloud-native financial clearinghouse that in revenue cycle management sits between healthcare providers and payers (insurers) to process essential transactions like eligibility checks, claims, and electronic payments. The funding was led by by Addition, with participation from Stripe, Ribbit Capital, USV, First Round, BoxGroup, and Bloomberg Beta. There was also a group of angel investors who jumped in, including Tobi Lütke (CEO of Shopify), Guillermo Rauch (CEO of Vercel), and Karim Atiyeh (CTO of Ramp). Finsmes

Since we opened with Oracle, we’ll close with them. Five days before 30,000 employees globally were declared unnecessary, Oracle announced that they leased additional space in Nashville, specifically 116,000 square feet within The Neuhoff District at 1320 Adams Street. Oracle now has 2,000 “seats” across three Nashville locations. The release touts “teams focused on a wide variety of roles, including sales and marketing, cloud engineering, software development, and product management. The company is actively recruiting ambitious thinkers and leaders eager to shape the next generation of cloud infrastructure and AI innovation. ” Perhaps some of those hundreds of folks in KC and other locations can be rehired in Nashville (sic).