The ACCC produced this press release a few days ago.
HealthEngine in court for allegedly misusing patient data and manipulating reviews
The ACCC has instituted proceedings in the Federal Court against online health booking platform HealthEngine Pty Ltd (HealthEngine) for misleading and deceptive conduct relating to the sharing of consumer information with insurance brokers and the publishing of patient reviews and ratings.
The ACCC claims that between 31 March 2015 to 1 March 2018, HealthEngine manipulated the patient reviews it published, and misrepresented to consumers why HealthEngine did not publish a rating for some health practices.
“We allege that HealthEngine refused to publish negative reviews and altered feedback to remove negative aspects, or to embellish it, before publishing the reviews,” ACCC Chair Rod Sims said.
“We will argue that HealthEngine disregarded around 17,000 reviews, and altered around 3,000 in the relevant time period.”
“The ACCC considers that the alleged conduct by HealthEngine is particularly egregious because patients would have visited doctors at their time of need based on manipulated reviews that did not accurately reflect the experience of other patients,” Mr Sims said.
The ACCC also alleges that from 30 April 2014 to 30 June 2018, HealthEngine gave information such as names, phone numbers, email addresses, and date of birth of over 135,000 patients to private health insurance brokers for a fee without adequately disclosing to consumers it would do so.
“We also allege that patients were misled into thinking their information would stay with HealthEngine but, instead, their information was sold off to insurance brokers,” Mr Sims said.
The ACCC’s recent Digital Platforms Inquiry Final Report includes recommendations to strengthen consent and notification requirements under the Privacy Act.
“Issues of transparency and adequate disclosure when digital platforms collect and use consumer data is one of the top priorities at the ACCC,” Mr Sims said.
“Businesses who are not upfront with how they will use consumer data may risk breaching the Australian Consumer Law and face action from the ACCC.”
“One of our recommendations from the Digital Platforms Inquiry is that obtaining consent for different purposes of data collection, use or disclosure must not be bundled,” Mr Sims said.
The ACCC is seeking penalties, declarations, corrective notices and an order for HealthEngine to review its compliance program.
The ACCC is also applying for an order from the Court that would require HealthEngine to contact affected consumers and provide details of how they can regain control of their personal information.
Background:
HealthEngine describes itself as Australia’s largest online health marketplace, which is used by over a million consumers every month.
HealthEngine provides a booking system for patients and an online health care directory that lists over 70,000 health practices and practitioners in Australia. The directory allows patients to search for and book appointments with health practitioners. Up until June 2018, consumers could also access reviews from patients about the quality and services of health practitioners.
Two of HealthEngine’s major investors are subsidiaries of Telstra and Seven West Media.
A sample of reviews allegedly manipulated by Health Engine can be found in the ACCC’s concise statement below.
The attached document below contains the ACCC’s initiating court documents in relation to this matter. We will not be uploading further documents in the event these initial documents are subsequently amended.
Concise Statement
Reading this release it is hard not to conclude that the ACCC is ‘throwing the book’ at HealthEngine. It is also pretty hard to really believe the majority of its users were aware of the review tampering and covert referral activities which it seems were really going on in spades!
You can read the huge amount of coverage from the general, medical and technical press linked in tomorrow afternoon’s blog….
The Concise Statement – linked above – is indeed concise and I have to say is remarkably clear and remarkably damning. On the face of it, and I am not a lawyer, it would be hard to believe the court will not find that the behaviour as regards the patient reviews was not ‘misleading and deceptive’.
My feeling is that the outcome will be that HealthEngine is found to have erred, and will have all sorts of penalties imposed which may very well put them out of business both financially and reputationally.
What do others think and would you invest in this business?
David.
8 comments:
What happens to HealthEngine will demonstrate how serious the government is when it comes to protecting a patient's health data.
And it will set a precedent that will apply if and when ADHA stuffs up with My Health Record data.
Health Engine has burnt its credibility. Its reputation is in tatters. While its technology solution had considerable merit, offering convenience and benefits to health service providers and their patients, any aspirations its founders and substantial investors may have had of getting a major ROI through an IPO have evaporated.
Telstra Health might move to acquire full ownership at a greatly depreciated price, rebrand the product and meld it into its other health offerings.
Politicians should take note. Patient privacy and confidentiality of health information should be paramount. It isn't. The government is exposed through its My Health Record system to a far greater degree than we have witnessed with Health Engine. The ramifications of this should be obvious to all.
In an ideal world the above predictions and observations would be close to reality. My guess is that the HealthEngine will be sold and swallowed as part of some strategic nudge undertaking involving far to many buzzwords for many in Government.
I wonder if anyone actually knows why they are collecting this information? Has anyone stopped and asked? It seems every few years a new batch of ‘idealists’ wanting to ‘help’ with fresh bill boards, motivation posters, the language of lean but the mindset of six stigma, and a belief that healthcare is a set of basic transactions.
They are to health IT innovation as SharePoint is to knowledge management.
Telstra will weather this little storm. After all it has the resources and experience. The exposed party here is the Department and Government in general. There poster Agency for Digital Health has not been a success on any level and continues to spiral out of control. Lost for ideas and lacking in its ability to inspire, even NSW is splintering, a clear sign the NHCIOF board seat is about to be renewed. Many will rightfully ask ‘just what was learned by the NSW board member that warrants such a high-risk high-investment and not a complete embracing of the MyHR?
Government more broadly has the difficulty in balancing its purpose of legislation to protect society and its now obvious role as a data miner and provider of HR services in direct competition with the free market. Any changes to protect those it is suppose to serve will have consequences in its efforts to survey and suppress, bullying and simple get a kick out of head-xxxxxxxxxx
Don’t look to ADHA to champion honest representation. I was bemused to note the lady in the photo is not an actual GP. Which is odd considering how much we fund GP advisors
https://www.digitalhealth.gov.au/about-the-agency/digital-health-space/digital-health-tools-for-shaping-the-future?_cldee=c3V6aS5iYWJpY0BkaWdpdGFsaGVhbHRoLmdvdi5hdQ%3d%3d&recipientid=contact-2137f4876ac6e61180ecc4346bc4bef0-62ef6bd467104a059e4ceb04d6203a75&esid=5160c2c7-d354-e911-a96d-000d3ad244fd
How will digital health tools help these poor folks?
How will they manage their health data?
How will they manage who can see their health data?
Digital access divide grows in disadvantaged communities
https://www.abc.net.au/news/2019-08-12/digital-access-divide-grows-among-disadvantaged-tasmanians/11402218
I wonder what ADHA's reaction to this is:
Time to dump these wasteful pharmacy programs
http://medicalrepublic.com.au/time-dump-wasteful-pharmacy-programs/22148
"Billions of dollars have been spent over the past 10 years on community pharmacy programs that show no evidence of benefit, according to a government review."
...
"The Medical Services Advisory Committee reviewed the programs for the Department of Health in accordance with a commitment in the 6th agreement, negotiated by then health minister Sussan Ley, that they would be subject to an independent cost-effectiveness assessment.
The programs, worth $1.26 billion over the life of the pharmacy agreement, are the Home Medication Review, MedsCheck and Diabetes MedsCheck, Clinical Interventions, Residential Medication Management Review, Quality Use of Medicines, Staged Supply Service and Dose Administration Aids.
Not one of them was assessed as showing evidence of clinical or economic benefit."
Rather devalues the case the Pharmacy Guild are trying to build re prescription meds and access to myhr.
wonder what ADHA's reaction to this is:
We need to axe the fax - how great are axes.
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