This appeared last week:
HealthEngine made $2 million from selling patient information, court told
But judge rejects company's settlement with the ACCC, saying it was less than the profits it was making
11th June 2020
By AAP
The HealthEngine booking service made nearly $2 million for selling on patient information to insurance brokers, the Federal Court of Australia has been told.
A formal decision on whether the country's largest medical booking platform is guilty of deceptive and misleading conduct is still to be handed down.
But from April 2014 to June 2018, the company allegedly provided the details of 135,000 patients — including names, phone numbers and dates of birth — to nine different health insurance brokers, generating some $1.8 million.
It also failed to publish over 70,000 negative patient reviews of GP practices and other healthcare providers as well as doctoring others to delete paragraphs containing criticism, according to the ACCC.
After booking appointments via the company's app or website, the patient was asked if they would recommend the practice to other patients.
But if fewer than 80% of people who attended answered "yes", HealthEngine would not publish a rating but would attach a note declaring: "There is currently insufficient data to calculate a patient satisfaction level."
During a Federal Court hearing last week, it emerged that the company had agreed a settlement with the ACCC amounting to $2.9 million.
But the settlement was rejected by the judge Justice David Yates who said the penalty was inadequate.
"A settlement of $2.9 million] would be a very respectable cost of doing business," he pointed out.
During the hearings, the Federal Court heard that the HealthEngine received money for more than 1.3 million patient referrals.
However, lawyers for both the ACCC and HealthEngine were unable to provide the court with a breakdown of the money generated from each referral.
Justice Yates said that if it were just $1, the company would have made more than $1.3 million — though he said it was likely more.
He said the estimate when combined with the $1.8 million the HealthEngine made from sending referrals to the insurance brokers, was more than the $2.9 million fine being suggested.
"Adding up the two amounts, it gets you well over $3 million, yet I'm [being] asked to accept that it's appropriate that a global penalty of $2.9 million should be imposed which would yield a profit to the respondent?" Justice Yates noted.
More here:
https://www.ausdoc.com.au/news/healthengine-made-2-million-selling-patient-information-court-told
I have to admit I had forgotten just how egregious HealthEngine’s behaviour was in selling of this personal data for profit without clearcut positive consent.
It seems Justice Yates is less that impressed and wants to impose a fine that will actually constitute a real penalty. More power to his arm is my view!
David.
1 comment:
Good judgement, let's hope it stands up in appeal. This behaviour is outrageous. The company should cease trading and its directors should be barred from holding such positions for quite some time. The fact ADHA has stood by them as a ”trusted partner” does not paint ADHA in a good light.
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