The British tech company hailed as the future of healthcare by former Health Secretary Matt Hancock could face legal action after its collapse in the US.
Fall from grace: Dr. Ali Parsa vowed to revolutionize healthcare
A British tech company hailed as the future of healthcare by former Health Secretary Matt Hancock could face legal action after it collapsed in the US.
Babylon Health, which has 100,000 NHS patients, will be sold after losing almost all its value since founder Dr Ali Parsa launched it for £3bn on the New York Stock Exchange in 2021.
Jersey-registered Babylon last month announced London-based AlbaCore Capital would take over its assets without shareholder approval and was also calling administrators in the UK.
Parsa, a former refugee, saw his net worth soar to £825m after investors were attracted by his promise to revolutionize healthcare through the use of artificial intelligence (AI).
This included a controversial chatbot, which claimed to be able to diagnose diseases, despite repeated criticism from leading health experts. Parsa also claimed that the company had designed software that “turns Alexa [Amazon’s virtual assistant] in a doctor’. But now it is known that an anonymous investor assembled a UK legal team over the claims related to Babylon’s technology.
David Watkins, a consultant to the NHS and an arch critic of Babylon, said: “The investor is considering legal action in relation to the company’s AI, and I have been asked to speak to their legal counsel.”
Last year, Babylon and the NHS agreed to terminate two long-term contracts due to “challenging global and macroeconomic conditions”.
However, the company insists it will continue to run its GP@Hand app contract at Hammersmith & Fulham, which allows patients to schedule virtual appointments. Hancock previously said that he wanted GP@Hand to go national.
Documents filed with US authorities reveal that Parsa received £5.6m in wages and benefits for 2022. In March, he claimed that Babylon’s 2022 accounts showed “continued improvement” and forecast profitability for 2024 despite losses of £409 million in the preceding three years inclusive. 2022. Babylon has been repeatedly contacted for comment.
