Outcome Health, whose former executives became embroiled in a nearly $1 billion fraud scheme, has combined with a Cincinnati-based company called PatientPoint in a deal that will get rid of the embattled company’s name.
The newly formed company will be called PatientPoint Health Technologies and will be focused on creating more effective doctor-patient interactions, according to a news release announcing the deal.
Terms were not disclosed. The majority owners are a group of investors that includes funds managed by L Catterton and Littlejohn & Co.
Bloomberg reported the merger talks last year. Sources familiar with the deal told Bloomberg at the time that the deal could value the combined company at roughly $600 million, including debt.
Outcome Health was once a darling of Chicago’s tech scene. The company installed screens in health care offices and waiting rooms that show drug ads and health information. Pharmaceutical companies paid Outcome to run the ads and other content on the screens.
Criminal charges were brought against former CEO Rishi Shah, former president Shradha Agarwal and two other former executives for their alleged roles in a $1 billion fraud scheme at the company. Shah and Agarwal pleaded not guilty to the charges in late 2019. Charges are still pending.
Outcome Health has been working to rebuild its reputation and brought in new leadership, including CEO Matt McNally.
PatientPoint Health Technologies will be led by PatientPoint’s current leadership team, according to the release. Outcome Health tech executives will also join the team.
"We have great respect for the substantial provider network the Outcome Health team has built as well as the compelling solutions they have developed to enrich the patient's point-of-care experience," Mike Collette, who will be CEO, said in the release. "We also commend CEO Matt McNally and COO Nandini Ramani for leading Outcome Health's incredible turnaround and rebuilding client trust."
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Outcome Health to combine with Cincinnati-based company - Crain's Chicago Business
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