Outcome Health, a Chicago-based company that provides health education technology to doctor’s, clinics and hospitals, announced Jan. 26, that its Indian-American founder and CEO Rishi Shah, and President Shradha Agarwal, have stepped down to take up new positions in a settlement of litigation with company investors.
Shah and Agarwal have moved into the roles of Chairman and Vice Chair of the Board of Directors from their previous positions. The expanded Board of Directors, which also includes three new independent directors and two investor representatives, is launching a search for a new CEO, the company said in a press release.
“The resolution is based on our conviction in the company’s mission and path to growth that will be beneficial for all stakeholders in the healthcare community — patients, physicians, and life sciences companies — by enhancing delivery of effective and informed health information, services, and treatment options,” the company said in a statement.
As a result of the settlement, the equity investors, lenders and company’s founders are recommitting $159 million to Outcome Health, which will be used to reduce the company’s debt by $77 million and further strengthen and scale its technology platform, automated processes and overall customer operations, the company said.
Outcome Health claims it “provides the nation’s largest point-of-care digital network, a BPA-certified platform of more than 140,000 digital devices that includes waiting room screens, easy-to-use tablet technology, exam room wallboards and Wi-Fi access in more than 40,000 physician offices across the country.”
Shah, in a statement, said integrity is the foundational value of the company. He added that in the interest of higher standards of reporting and transparency, the company had taken certain actions, including “the most” rigorous platform and campaign audit standards; providing every customer the capability to include a 3rd party BPA Worldwide audit on every program it sells, starting immediately; adding more checks and balances through the automation of data and analytics; hiring an expert to “thoroughly” review any concerns that have been raised about the past conduct of certain employees, following which “decisive and appropriate” action would be taken.
Shah said the fundamentals of the business are strong.
According to a Chicago Tribune report Jan. 29, the company’s problems are still being dealt with, and that “pharmaceutical advertisers have pulled tens of millions of dollars in ads from the company, and hospitals have backed away,” in recent months. In addition, the Tribune said, more than 178 of the company’s 535 employees took voluntary buyouts in late November, and earlier in January, the state of Illinois suspended two tax credit agreements it had with Outcome Health.