Outcome Health has hired its first-ever chief compliance officer as the embattled startup continues to try and rebound from its fraud lawsuit with investors.
Outcome announced Wednesday that it has hired John Vaughan to the newly created role. He'll be in charge of "developing, implementing and overseeing compliance policies and procedures," the company said in a news release. He'll work with the company's Corporate Compliance Program, which is designed to make sure Outcome is in compliance with applicable laws and regulations.
Outcome was sued by a group of its investors---which included Alphabet, Goldman Sachs and Chicago’s Pritzker Group Venture Capital---in 2017 for misleading advertisers on the effectiveness of the company's advertising, which is shown on digital screens inside doctors offices. Outcome settled the lawsuit in January 2018, and co-founders Rishi Shah and Shradha Agarwal left the startup that June. Their departures came just days after Outcome announced it had hired new CEO Matt McNally.
“We have made great strides to define new industry standards for point of care,” McNally said in a statement. “We have invested in third-party independent auditing of all our content by Business Publications Audit (BPA), and we are engaged in a collaboration with Nielsen to better understand our audience. These relationships ensure we maintain the highest standards of measurement and performance with every stakeholder, raising the bar for the entire industry."
Vaughan comes to Outcome from the Danaher Dental Platform, where he also served as chief compliance officer. He's also held executive roles at Genentech, Johnson & Johnson, Hospira, Bristol-Myers Squibb and Shire.
Vaughan will report to Seth Darmstadter, Outcome's general counsel.
