Week-end update: Breaking–Theranos lab director suing Hulu, Disney for defamation; ‘green shoots’ for SonderMind, Cognito, Vital, MedArrive; 3 in Asia; Telstra Australia’s new CTO

Key Theranos prosecution witness suing Disney and Hulu for misrepresentation and defamation. It’s not only the FTC but also Adam Rosendorff, MD, the former lab director for Theranos who quit in late 2014, who is fighting against misrepresentation, in this case a fictionalized portrayal of the lab director character. l’affaire Theranos was lightly fictionalized in the docudrama ‘The Dropout” that ran on Hulu in 2022. Dr. Rosendorff is suing both Hulu, its corporate parent, Disney, plus other listed producers, in a New York State Supreme Court lawsuit (link and PDF) for defamation. The summons was filed in New York County (Manhattan) Thursday.

While his name was not used, the lab director named ‘Mark Roessler’ in “The Dropout” was portrayed, according to the summons, as unethical and unfit. He was “shown as covering up Theranos’ fraudulent scheme, thereby endangering patients’ lives … and as otherwise unfit to practice medicine,” “falsely portrayed as a perjurer, a criminal, and of being completely unfit to practice his profession.” In the docudrama, Roessler orders the destruction of damaging lab results, falsifies records, and engages in dishonest behavior. The reality was that Dr. Rosendorff testified against both Elizabeth Holmes and Sunny Balwani in their trials as an invaluable prosecution witness, detailing the failures of the lab tests in his testimony and affidavits [TTA 1 Oct and 6 Oct 2021]. He quit Theranos on these issues and more after 18 months when Holmes and Balwani refused to correct them. “Both the media and defendants’ reckless disregard is sufficient evidence of the malice which a public figure must show to establish claims for defamation.”

Being a whistleblower ain’t for sissies. Being tagged as part of Theranos’ demise and years in endless legal proceedings broke him professionally and fractured him mentally, as revealed after Holmes’ conviction. It became grist for yet more defense appeals that failed [TTA 20 Oct, 26 Oct 2022]. Reuters, New York Post

A (remainder) sale, partnership, and funding roundup–a few green shoots of spring

SonderMind buys out the remains of Mindstrong. The deal is for the remainder of Mindstrong’s tech assets and about 20 related staff. Price was not disclosed. Mindstrong ceased operations as of 10 March and announced they would lay off 100+ employees including the CEO and CFO no later than 15 April according to their filed WARN notice. It raised over $160 million since 2014 including a $100 million Series C in 2020. SonderMind is also in virtual mental health, assessing potential patients, matching them with a therapist in their state, who will see the patient virtually or in-person. According to SonderMind, Mindstrong’s tech will add to personalized care journeys, clinical notes templates, and improved measurement-based services.  SonderMind has had its own series of layoffs, with a 15% cut late in 2022. The deflation of telemental health continues. Mobihealthnews, Digital Health Business & Technology

Neurotech company Cognito Therapeutics raised $73 million in a Series B. It was led by FoundersX Ventures, adding new investors Starbloom Capital, Alzheimer’s Drug Discovery Foundation, WS Investment Company, and IAG Capital. Total funding is now $93 million. Cognito has developed an external neuromodulation device for neurologically degenerative diseases. It uses sensory stimulation to evoke gamma oscillations, which are believed to play a part in memory operations. It is concentrating on improving cognition and memory in Alzheimer’s Disease early-to-mid-stage patients. Cognito is being investigated as part of the HOPE study for Alzheimer’s Disease.  It received FDA Breakthrough Device Designation in 2021 and has completed a Phase 2 trial. Mobihealthnews, Business Wire release

Vital, a patient experience software developer, raised $24.7 million in a Series B. The funding was led by Transformation Capital, with support from Threshold Ventures, strategic health system investors and Vital CEO/Mint.com creator Aaron Patzer. Total funding is now over $40 million. Vital provides real-time patient updates and messaging services for patients and families admitted to hospitals and EDs, as well as follow-ups such as appointments. Business Wire release

MedArrive, an in-home care provider, is partnering with Ouma Health, for maternal-fetal care of women on Medicaid coverage. MedArrive deploys a field provider network for in-home care including testing, assessments, SDOH, and extension of provider services. The technology includes a fully integrated care management platform. Ouma Health is a maternal-fetal telehealth service including behavioral health. Release

And some Asia-Pacific updates…

In Vietnam, online pharmacy Medigo received $2 million in Series A funding, led by East Ventures, with participation from Pavilion Capital and Touchstone Partners. Intellect, a telemental health startup based out of Singapore, received undisclosed funding from global healthcare provider IHH Healthcare for its regional expansion. In India, EHR startup DocPlix raised Rs 5 crore ($600,000) in a pre-series A funding round led by Eris Lifesciences. Mobihealthnews

In Australia, Telstra Health’s new CTO is Farhoud Salimi. He joins in April from eHealth NSW where he held the position of Executive Director, Service Delivery (CTO) among others in a 15-year tenure. Mr. Salimi replaces Russel Duncan, who retired at the end of last year. Telstra release, Mobihealthnews

Health data changes Down Under: My Health Record, Tim Kelsey and Telstra

Australia’s federal government is hoping for a boost to its national personal health records system, starting with a renaming of Personally Controlled Electronic Health Record (PCEHR) to My Health Record. Proposed in the government’s $485 million budget announcement on eHealth is a resolution of implementation issues and introducing trials of participation models including designing opt-out approaches. Currently enrollment stands at a paltry 10 percent of Australians. Computer World (Australia) Hat tip to Mike Clark via Twitter

Come December, also taking the long trip there will be NHS England national director for patients and information Tim Kelsey to join Telstra Health as commercial director. Telstra is Australia’s largest telecom developing a footprint in health, and earlier this year acquired Dr Foster LLP, the UK-based health informatics company. Coincidentally (?), Mr Kelsey co-founded Dr Foster prior to 2006, when he joined the NHS to start up the information site NHS Choices. During his NHS tenure, Mr Kelsey faced numerous controversies which are detailed in the Guardian and IT news/opinion site The Register reports, mainly concerning the Care.data database for all English medical records. Concerns were raised about inadequate privacy, transparency and confidentiality provision in its design, and after a halt it has still not restarted, although 1 million people have preemptively opted out–another issue in common with My Health Record. According to the Guardian, “The scheme was recently labelled “unachievable” by a Whitehall watchdog, the Major Projects Authority, which said the future of the programme should be reassessed.” A successor to Mr Kelsey has not yet been named.

Telstra has spent $100M on telehealth

Telstra Health has splashed out $100 million buying up other telehealth companies, it was revealed at a recent conference. Bronwyn Pike, former Minister of Health in Victoria and now Community Care Lead at Telstra Health, addressing the 13th National Rural Health Conference[grow_thumb image=”https://telecareaware.com/wp-content/uploads/2015/04/Telstra-Health.jpg” thumb_width=”150″ /] held in Darwin from May 24th to 27th, described how Telstra Health wants to transform rural health in Australia.

“Increasing demand, rising costs and more people with chronic illness are among the challenges Australia’s health care industry is facing. Working harder can only go so far — we need to reimagine what the future could look like”, Pike wrote in her abstract.

“Helping users to do more for themselves has been a key feature of almost every other industry change of the last decade. Banking is a perfect example — where once every single interaction required your physical presence in front of a teller, now you can manage almost every aspect of your banking needs securely online.

“Health is caught in a model that is inconvenient for patients and labour intensive for health care providers. We need to tailor the model to suit the health industry and capitalise on the benefits connection can provide. Those living in rural and remote communities without regular access to all levels of care stand to benefit enormously if we can unlock the potential of ehealth”