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November 22, 2022

Around the nation: Former Theranos CEO Elizabeth Holmes sentenced to over 11 years

Daily Briefing

    Former Theranos CEO Elizabeth Holmes on Friday was sentenced to over 11 years in prison for misrepresenting her blood-testing company, in today's bite-sized hospital and health industry news from California and Louisiana.

    • California: U.S. District Judge Edward Davila on Friday sentenced former Theranos CEO Elizabeth Holmes to over 11 years in prison for misrepresenting her blood-testing company's technology, finances, and business prospects. While Holmes was acquitted on four counts of fraud and conspiracy linked to patients who used the company's blood tests, federal prosecutor Robert Leach asked the judge to consider the health risks posed by her actions. Holmes' legal team had sought home confinement and community service, along with no more than 18 months in prison. But Davila sentenced Holmes to 11.25 years in prison, effective April 27, 2023. Holmes is expected to appeal the ruling within the 14-day deadline. (AP/Politico, 11/18; Somerville, Wall Street Journal, 11/18)
    • California: Kaiser Permanente and the California Nurses Association on Friday came to a tentative agreement on a four-year contract, which included a 22.5% wage increase, expanded benefits, a pledge to onboard additional staff, and more worker safety protections—a deal that avoided a potential strike of 21,000 RNs and NPs at 21 locations across Northern California. "The tentative agreement honors our Northern California nurses with a market-based economic package that accounts for inflation, accelerates our investments in staffing, and addresses workplace safety, diversity and equity, remote work, and other key matters in a way that is sustainable and benefits our members and patients as well," Kaiser Permanente said in a statement. (Devereaux, Modern Healthcare, 11/18)
    • Louisiana: FDA on Thursday approved SafeSource Direct's chemo-rated nitrile gloves, which "marks a tremendous step toward U.S. supply resilience," according to SafeSource CEO Justin Hollingsworth. "One hundred percent American owned, American operated and on American soil — we're uniquely positioned to help solve America's PPE supply challenges," Hollingsworth said. The company, which can currently manufacture 108,000 gloves every hour, plans to produce over 2 billion gloves per year by January 2024. "As the company expands its capacity over the coming months, it will be among the largest manufacturers of chemo-rated nitrile exam gloves in America — if not the largest," the company said in a statement. (Twenter, Becker's Hospital Review, 11/18)

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