Medvi’s Meteoric Rise Fueled by Dubious Ads Featuring Fake Doctors

Medvi, a telehealth startup boasting nearly $2 billion in projected sales this year, operates with just two employees. But behind its rapid growth lies a troubling marketing strategy involving AI-generated doctor profiles that don’t seem to exist.

The Illusion of a Lean AI-Powered Empire

Medvi’s story mixes impressive growth with serious concerns. Founded by Matthew Gallagher, the startup claims to harness artificial intelligence to deliver telehealth services with minimal human involvement. Last year, the company reportedly pulled in $401 million in revenue and $65 million in profit. This year, projections show Medvi could hit $1.8 billion in sales — all with just two employees on the payroll.

That’s surprising. Most companies reaching those numbers have hundreds, if not thousands, of staff.

But here’s the thing — much of Medvi’s explosive growth appears to be driven by a network of affiliate marketers using questionable tactics. Gallagher himself told Business Insider that roughly 30% of Medvi’s advertising comes from affiliates, who run ads promoting the company’s weight-loss drugs and sexual performance supplements.

These affiliates are running ads featuring supposed doctors who don’t exist. That’s right — AI-generated faces, fake names, and profiles that trace back to unrelated businesses or individuals. Some of these doctor profiles include phone numbers from countries like Angola or the Republic of Congo, and others have photos with telltale AI artifacts, like distorted text or watermarks from AI tools like Gemini.

Fake Doctors, Real Dollars

Meta’s ad library revealed at least six of these fake doctor pages actively marketing Medvi’s products. Profiles like “Dr. Matthew Anderson MD” or “Dr. Spencer Langford MD” boast credentials but trace back to unrelated entities — a gospel musician’s page or a clothing store, respectively.

Right now, one affiliate, using the name “Wade Frazer MD,” removed the “MD” from his profile after Business Insider inquired about it. Curiously, the same image appeared across multiple pages advertising Medvi, suggesting a pattern of reusing AI-generated photos to create fake endorsements.

At its peak, Medvi was linked to over 5,000 active ad campaigns on Meta platforms. After Business Insider flagged the suspicious doctor profiles, the number of ads dropped to around 2,800. Gallagher said the company complies with Federal Trade Commission guidelines and removes ads featuring AI-generated or misrepresented doctors once identified.

A review found that none of these pages clearly disclosed the use of AI or that the doctors might not be real. That lack of transparency raises red flags about the company’s marketing ethics.

More Than Just Fake Faces

Medvi’s questionable marketing doesn’t stop at doctor profiles. A previous investigation uncovered that the startup advertises weight-loss drugs like GLP-1 medications alongside flashy before-and-after photos and glowing patient testimonials.

But many of these images are AI-generated or manipulated. One featured “Michael P,” a customer claimed to have lost 48 pounds with improved muscle and sleep, but the photos actually came from a Reddit user who lost weight years earlier by giving up alcohol — long before GLP-1 drugs were widely used for weight loss. Medvi altered his face digitally to fit their narrative.

These tactics mislead consumers who are looking for real health solutions. The company’s approach has drawn criticism from consumer advocates, including the National Consumers League, which pushed for federal investigations into Medvi and other telehealth firms.

The Risks of AI-Driven Marketing in Healthcare

Medvi’s fast growth shows how AI can boost startups, but it also reveals risks when oversight falls behind.

Telehealth services exploded during the pandemic, with companies promoting convenient access to medications and care online. But the regulatory framework around online medical advertising is still catching up.

Ads with fake doctors and altered testimonials can mislead patients and endanger their health. The Federal Trade Commission has policies against deceptive advertising, but enforcement can lag behind fast-moving digital marketing tactics.

Medvi was one of six telehealth companies named in a September petition to the FTC by the National Consumers League and other groups, seeking investigation into misleading ads and marketing practices.

Gallagher insists Medvi is working to comply with regulations, saying the company removes problematic ads when found. Still, the existence of thousands of affiliate ads with questionable content suggests this is a tough problem to police.

What’s Next for Medvi and Telehealth Marketing?

Medvi’s case highlights bigger questions about AI-generated content changing online marketing, especially in healthcare. The ability to create convincing fake profiles and manipulate images on a massive scale could make it tempting for companies to cut corners.

Investors and consumers need to be extra careful. High revenue numbers and slick websites may not tell the full story. Behind the scenes, some companies might rely on questionable tactics to fuel growth.

Regulators will have to increase scrutiny as AI tools grow more powerful and widespread. People should know that not every doctor endorsing products online is real, which matters a lot for health.

Medvi’s rapid rise powered by AI and a handful of employees shows what technology can do — but its reliance on fake doctors and misleading ads is triggering legal scrutiny and consumer skepticism alike.