Global Probe Uncovers Private Intelligence Firm’s Web of Deception in Healthcare Industry
By Hanna Krueger, Boston Globe
A recent global investigation has exposed a complex network of private intelligence firms and corporate espionage in the healthcare industry, with Steward Health System at its center. The probe reveals how the hospital network allegedly used private spies to gather compromising information on employees, competitors, and critics, raising concerns about ethics and regulation.
The Investigation
According to documents obtained by OCCRP, Steward’s general counsel, Holtz, has denied any involvement in illegal or unethical activities since leaving his position as a lawyer. However, experts say that the tactics employed by private intelligence firms like Audere International and CT Group go beyond what is ethically permissible in business intelligence.
The investigation alleges that Audere, which was hired by Steward to investigate critics, gathered compromising information on employees, including:
- Personal medical records
- Sexual preferences
The firm also allegedly planned to gather more information by speaking to sex workers and arranging for a female “agent” to approach the employee.
The Purpose of the Probe
Steward’s probe of an employee appears to have been prompted by concerns that he might leak damaging information about a possible several-hundred-million-dollar hole in the company’s budget to its auditor. The company’s director of legal operations instructed employees to prioritize paying intelligence bills, stating that they were “truly existential work.”
Financial Records
The records also show how Steward paid private spy costs through its Malta subsidiary, which received government money from the Maltese hospital contract. Leaked financial documents reveal that:
- Steward billed its private spy firms over $2.9 million in 2022
- The company budgeted an additional $1 million for upcoming work
Consequences and Concerns
The investigation has raised questions about regulation and oversight of private intelligence firms. Experts argue that the lack of transparency and accountability allows these firms to operate with impunity, compromising personal data and reputations.
Steward Health System declared bankruptcy in May this year, citing financial difficulties. The company’s struggle to pay its bills highlights the prioritization of intelligence-gathering over critical healthcare services.
Conclusion
The global probe has exposed a web of deceit and corruption within the private intelligence firm industry. As experts argue that these firms operate without transparency or accountability, it is essential to establish stricter regulations to protect personal data and reputations. The consequences of neglecting this issue could be severe, compromising not only individual privacy but also the integrity of the healthcare system as a whole.