Skip to main content
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Current News
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • Digital Health
    • Transformation
    • ESG
    • People
    • Regional News
    • Digital Edition (Web Version)
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Midwest
    • Northeast
    • South
    • West
  • Blogs
    • AI
    • Deals
    • Layoff Tracker
    • HIMSS 2023
  • Opinion
    • Breaking Bias
    • Commentaries
    • Letters
    • From the Editor
  • Events & Awards
    • Awards
    • Conferences
    • Galas
    • Virtual Briefings
    • Webinars
    • Nominate/Eligibility
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Excellence in Governance
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top Innovators
    • Diversity in Healthcare
      • - Luminaries
      • - Top 25 Diversity Leaders
      • - Leaders to Watch
    • Women in Healthcare
      • - Luminaries
      • - Top 25 Women Leaders
      • - Women to Watch
    • Digital Health Transformation Summit
    • ESG: The Implementation Imperative Summit
    • Leadership Symposium
    • Social Determinants of Health Symposium
    • Women Leaders in Healthcare Conference
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Diversity Leaders Gala
    • Top 25 Women Leaders Gala
    • - Hospital of the Future
    • - Value Based Care
    • - Hospital at Home
    • - Workplace of the Future
    • - AI and Digital Health
    • - Future of Staffing
    • - Hospital of the Future (Fall)
  • Multimedia
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Sponsored Video Series - One on One
    • Sponsored Video Series - Checking In with Dan Peres
  • Data & Insights
    • Data & Insights Home
    • Hospital Financials
    • Staffing & Compensation
    • Quality & Safety
    • Mergers & Acquisitions
    • Data Archive
    • Resource Guide: By the Numbers
    • Surveys
    • Data Points
  • Newsletters
  • MORE+
    • Contact Us
    • Advertise
    • Media Kit
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Technology
October 15, 2015 12:00 AM

Blog: Theranos criticizes damning WSJ article

Adam Rubenfire
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Theranos founder and CEO Elizabeth Holmes explains her views on healthcare access in a video posted on the Theranos website.

    Lab startup Theranos is in hot water after a Wall Street Journal article accused the Palo Alto, Calif.-based company of misleading regulators and rarely conducting tests on its proprietary equipment that claims to process lab tests with just a few drops of blood.

    The Journal article cites internal e-mails and interviews with former senior employees who alleged that in December 2014, the company used its proprietary Edison device for only 15 of the hundreds of tests on its offering menu. Instead, the company does most of its tests on traditional machines, the Journal said, like those used by lab giants Quest Diagnostics and LabCorp.

    Theranos hadn't publicly disclosed that it used traditional equipment for most of its testing, despite advertisements that many of its tests could be conducted with "just a few drops of blood," a feature of Edison.

    WSJ sources also said Theranos submitted proficiency-testing samples to the CMS that were conducted on traditional lab equipment instead of Edison. Federal rules require that the samples, which are used to verify that labs are providing accurate results, are supposed to be tested in the same manner in which the lab routinely tests patient specimens, which, in the case of Theranos, was widely thought to be through Edison.

    An attorney for Theranos confirmed to the Journal that the company isn't yet using the device for all of its tests and said the transition to testing entirely with Edison is “a journey.” In a statement Thursday morning, Theranos called the WSJ story “factually and scientifically erroneous and grounded in baseless assertions by inexperienced and disgruntled former employees and industry incumbents.”

    The company said the sources used in the WSJ article “were never in a position to understand Theranos' technology and know nothing” about how the company's current processes.

    “When you create innovative technology, scrutiny is to be expected,” the company said. “We have always welcomed that scrutiny – opening up to regulators like no lab before and voluntarily submitting all our tests for FDA review, the gold standard for quality.”

    Theranos has partnered with several big names in healthcare, including insurers Capital Blue Cross and AmeriHealth Caritas as well as the Cleveland Clinic and drugstore operator Walgreens Boots Alliance.

    A Capital Blue Cross spokesman said in a statement that the insurer has a "strong strategic partnership with Theranos and we expect that to continue to develop and grow." He added that the insurer has not heard any complaints about test accuracy since Theranos opened its first location in a Capital Blue store in Enola, Pa., in July.

    "As an insurance company, it is important for us to partner with companies that have the commitment not only to the highest standards, but also to constant innovation," the spokesman said.

    Cleveland Clinic deferred comment to Theranos as did a Walgreens spokesman, who said the company has been reviewing next steps since its initial rollout of the lab services in Phoenix, “and that hasn't changed.” About a dozen doctors and nurses complained to Walgreens about the test results by phone or e-mail between late 2013 and late 2014, a source told the Journal.

    An AmeriHealth Caritas spokeswoman similarly said in a statement that the insurer is in the early stages of planning its partnership with Theranos.

    “We are committed to ensuring our members have access to quality healthcare and services and our service providers meet regulatory requirements,” said the AmeriHealth Caritas spokeswoman.

    Theranos is led by Stanford dropout Elizabeth Holmes, whom Forbes called the "youngest self-made female billionaire in the world." The 31-year-old is ranked No. 5 among U.S. healthcare billionaires and is worth an estimated $4.5 billion.

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    doctor_patient_tablet_getty_i_i.jpg
    How AI may influence pain medication prescriptions
    Amir Dan Rubin
    Amazon's One Medical CEO to step down later this year
    Most Popular
    1
    Centene to lay off 2,000 workers
    2
    How health systems are battling price-gouging allegations
    3
    Senate advances bill to temporarily aid hospitals, health centers
    4
    Elevance, Blue Cross Louisiana halt $2.5B proposed deal
    5
    Tower Health to sell urgent care centers, close others
    Sponsored Content
    Digital Health Intelligence Newsletter: Sign up to receive a twice-weekly (T, F) morning newsletter featuring the latest reporting on technologies, trends, players and money fueling the rapid changes in how healthcare is developed, paid for and delivered.
    Get Newsletters

    Sign up for enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today
    MH Magazine Cover

    MH magazine offers content that sheds light on healthcare leaders’ complex choices and touch points—from strategy, governance, leadership development and finance to operations, clinical care, and marketing.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS

    Our Mission

    Modern Healthcare empowers industry leaders to succeed by providing unbiased reporting of the news, insights, analysis and data.

    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Help Center
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Current News
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • Digital Health
      • Transformation
        • Patients
        • Operations
        • Care Delivery
        • Payment
      • ESG
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition (Web Version)
    • Blogs
      • AI
      • Deals
      • Layoff Tracker
      • HIMSS 2023
    • Opinion
      • Breaking Bias
      • Commentaries
      • Letters
      • From the Editor
    • Events & Awards
      • Awards
        • Nominate/Eligibility
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Excellence in Governance
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top Innovators
        • Diversity in Healthcare
          • - Luminaries
          • - Top 25 Diversity Leaders
          • - Leaders to Watch
        • Women in Healthcare
          • - Luminaries
          • - Top 25 Women Leaders
          • - Women to Watch
      • Conferences
        • Digital Health Transformation Summit
        • ESG: The Implementation Imperative Summit
        • Leadership Symposium
        • Social Determinants of Health Symposium
        • Women Leaders in Healthcare Conference
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Diversity Leaders Gala
        • Top 25 Women Leaders Gala
      • Virtual Briefings
        • - Hospital of the Future
        • - Value Based Care
        • - Hospital at Home
        • - Workplace of the Future
        • - AI and Digital Health
        • - Future of Staffing
        • - Hospital of the Future (Fall)
      • Webinars
    • Multimedia
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Sponsored Video Series - One on One
      • Sponsored Video Series - Checking In with Dan Peres
    • Data & Insights
      • Data & Insights Home
      • Hospital Financials
      • Staffing & Compensation
      • Quality & Safety
      • Mergers & Acquisitions
      • Data Archive
      • Resource Guide: By the Numbers
      • Surveys
      • Data Points
    • Newsletters
    • MORE+
      • Contact Us
      • Advertise
      • Media Kit
      • Jobs
      • People on the Move
      • Reprints & Licensing