POTUS delivered what the Commonwealth Fund refers to as a one-two punch last week, signing an executive order to allow insurance companies to sell “junk” plans with low premiums that would offer little or none of the minimum coverages mandated by the ACA. The second part of the punch was that subsidies for individuals buying insurance on exchange markets would come to an end, effectively ending the uncertainty on the “will-he-won’t-he” that kept the market on pins and needles since the beginning of the year, but potentially marking the beginning of a protracted period of chaos with potentially bad outcomes for consumers.

Speaking of bad outcomes, here’s a pop quiz: name a recent healthcare startup that went from unknown to a multi-billion dollar valuation, making its 30-year old founder an instant billionaire, and seeing the wheels come off the bus due to failed execution, misleading of investors and customers, and getting outed by a WSJ article. (No, it’s not Theranos – though that is a valid answer too).

Outcome Health, a Chicago-based startup that exploded on the scene this summer with an initial funding round of $500 M that made it a $5.5 Bn company, was the subject of a scathing piece by the WSJ that claimed that Outcome Health had misled advertisers ( pharma companies) with manipulated information. The parallels between Theranos and Outcome Health seem uncanny.

Earnings season for India-heritage technology majors kicked off this week with TCS announcing results for calendar Q3. Healthcare’s QoQ growth of 3.6% was marginally above the company’s 3.2% growth, with a couple of significant wins in the life sciences space. As before, we will be releasing our Q3 analysis later in the quarter. For those interested, you can download last quarter’s analysis here.

And the word of the week is: CHR