Federal regulators announced Friday that Elizabeth Holmes, a convicted fraudster and founder of defunct blood testing company Theranos, has been barred from participating in federal health programs for 90 years, effectively a lifetime ban. .
The Department of Health and Human Services' (HHS) Office of Inspector General (OIG) cited Holmes' 2022 conviction for fraud and conspiracy to commit wire fraud as the reason for his suspension.
Holmes was sentenced to nearly 11 years in prison starting in May 2023 for lying to investors about the capabilities of his blood testing technology. This sentence was commuted to two years in July.
“The statutory minimum sentence for exclusion based on a conviction like Holmes' is five years. When certain aggravating factors exist, longer exclusion periods are warranted,” the OIG said in a statement. . “Mr. Holmes' period of exclusion will be determined based on the application of several aggravating factors, including the period during which the conduct occurred, the period of imprisonment, and the restitution ordered to be paid.”
OIG's exclusion from federal health care programs means Mr. Holmes is not eligible to receive benefits through programs such as Medicare or Medicaid. She also cannot work for a company that receives federal health care funds, except in some limited circumstances.
Theranos' chief operating officer, Ramesh “Sunny” Balwani, with whom Holmes was running the company, had also been excluded from federal programs for 90 years.
“Accurate and reliable diagnostic testing technologies are essential to the public health infrastructure,” HHS Inspector General Christy A. Grimm said in a statement. “False statements about the reliability of these medical products can put patients' health at risk and lead to mistrust in the health care system.”
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
