Search Results for: health diagnostic laboratory

The Wild West Of New Laboratory Scams

It’s like the wild west. With no sheriff acting to impose law and order, many laboratory companies are now deploying a wide variety of new scams to gain new business. The new scams have emerged in the wake of the collapse and bankruptcy of Health Diagnostics Laboratory (see the bottom of this story for links to previous coverage)…

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Documents Reveal Rogue Laboratory Company’s Unorthodox Billing Practices

–Promised in writing to not bill patients, then changed its tune Records and emails newly posted on the web by a physician document the strategy used by a controversial new laboratory company to bypass laws and major safeguards designed to prevent fraud. Nearly 2 years ago, it became known that the federal government was investigating…

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Zombie Laboratory Company Sics Bill Collectors On Patients Promised Free Tests

(Updated) In several short years Health Diagnostic Laboratory (HDL) achieved spectacular growth partially on the promise to customers that they would never be responsible for the high costs of the company’s tests. Now, after bankruptcy and a forced sale of the company following multi-million dollar lawsuits by the Federal government and large private insurance companies, those same…

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Bankruptcy Judge Approves Sale Of Embattled Diagnostic Lab Company

A federal bankruptcy judge has approved the sale for $37.1 million of the once high-flying Health Diagnostics Laboratory to a new lab company, True Health Diagnostics. True Health has a business model that mimic’s HDL’s and is owned by some of the same players who helped create and who owned HDL. Health Diagnostic Laboratory (HDL) was started in 2009. By 2012 the…

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Embattled Laboratory Files For Bankruptcy

Health Diagnostic Laboratory, Inc., the embattled lab company, has filed for chapter 11 bankruptcy. The once high flying company, which was founded in 2009 and achieved annual revenue of more than $400 million in a few short years, has been beset by scandal and legal difficulties. Most recently, the US Department of Justice announced that it had reached a…

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Inside The Scandal: Profit And Greed At An Embattled Laboratory Company

How does a clinical laboratory company grow in a few short years from nothing to more than $400 million in revenue and over $100 million in profit? Since the same company just settled with the DOJ for as much as $100 million, it’s reasonable to suspect that growth was probably not entirely legitimate. Now new information,…

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More Turmoil For Troubled Medical Laboratory Company

Problems continue to accumulate for the deeply troubled medical laboratory company Health Diagnostic Laboratory. Following several years of spectacular growth, in which the company grew to $400 million in annual revenue, the company last year began an equally spectacular implosion when it became known that the federal government was investigating the company for giving kickbacks to physicians to use the company’s tests….

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Cigna Sues Embattled HDL Laboratory For $84 Million

The Cigna Health and Life Insurance company is suing Health Diagnostic Laboratory Inc. for $84 million.  As reported previously, the embattled lab company is the subject of an ongoing Federal investigation concerning kickbacks and fraudulent billing. The charges against HDL in the suit filed last week in federal court closely echo the earlier allegations against the company….

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Embattled HDL Laboratory CEO Resigns Amid Federal Investigation

Tonya Mallory, the embattled President and CEO of troubled Health Diagnostics Laboratory, has resigned her positions, the company announced today. Mallory said she was leaving to help her brother start a new business. Dr. Joe McConnell, a co-founder of the company and its Chief Laboratory Officer, will succeed her. Mallory will remain on the HDL Board of Directors. As previously reported (by…

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Seeking Profit and Investors, Rogue Lab Moves Into Small Hospitals

A controversial new laboratory company specializing in “advanced cardiovascular risk testing” is developing an innovative, highly profitable– and legally dubious– new business model. Details of the scheme are spelled out in a “Management Presentation” slide presentation sent to me by a confidential source. The slide presentation, according to my source, is  being shown by executives at True Health…

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Prenatal Genetic Test Billing Practices Questioned

–Sequenom billed insurance companies $2,760 but let patients pay only $200? Patients who order an expensive prenatal genetic test from Sequenom are being told that they will not be held responsible for the vast majority of the bill if it is denied by insurance. This policy may appear to benefit patients but may be considered a…

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Zombie Lab Sues Former Execs, Owners, And Sales Force

–Yet more fallout from the catastrophic bankruptcy of HDL Lab The Zombie Lab case just got even messier. Last Friday the trustee for the bankrupt Health Diagnostic Laboratory (HDL) filed a massive lawsuit against the former executives, owners, sales force members, and others who profited from HDL. The 205-page lawsuit includes a detailed narrative of…

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Zombie Lab Company Sics Bill Collectors On Doctors Who Took Kickbacks

–The liquidating trustee for HDL Lab is seeking to reclaim kickbacks paid to doctors who ordered the company’s tests. Many doctors who ordered tests in the past from Health Diagnostic Laboratory (HDL) are now opening some unexpected and very unwelcome letters. HDL was the billion dollar lab company with a meteoric rise and an even…

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The Billion Dollar Lab Scandal

If you think Theranos is a big story then I have some news for you. There’s another medical laboratory scandal  that dwarfs the Theranos story by almost any standard except for hype. The Theranos story is an important sexy Silicon Valley story. It’s more about an imagined  shimmering future than about the greasy present we actually…

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Vampire Lab Turns To Old Trick To Grow Business: Physician Owned Labs

(Updated) True Health Diagnostics, the new laboratory that bought the assets and adopted the business model of the disgraced and bankrupt laboratory company Health Diagnostic Laboratory (HDL), is turning to some old, unethical, and illegal tricks to grow its business. As I’ve reported previously, one key to the spectacular growth of HDL laboratory involved surreptitious…

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New Lab Company Seeks To Bury Links To Zombie Lab And Rogue Sales Team

A new, rapidly growing laboratory company has been publicly linked to a disgraced and now bankrupt laboratory company and its sales team. Now the new company, True Health Diagnostics (THD), is trying to distance itself from that lab company, Health Diagnostic Laboratory (HDL), and its affiliated sales team, BlueWave. But THD’s claim of independence falls…

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More Blasts Of Concern Over ROCKET-AF

The controversy over the big Xarelto trial does not appear to be going away. A new investigation published in the BMJ raises more troubling questions about the ROCKET-AF trial, which compared the novel oral anticoagulant rivaroxaban (Xarelto, Johnson & Johnson) to warfarin in patients with atrial fibrillation. The controversy about the trial first unfolded last…

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US Freezes Millions Of Dollars In Assets Of Rogue Lab Sales Force

The US government is freezing millions in dollars in assets from the owners of BlueWave, the sales company that participated in “a massive kickback scheme” involving Health Diagnostics Laboratory (HDL) and a second smaller laboratory company, Singulex, Inc. A US judge last week granted an application from US and state attorneys to ensure that BlueWave…

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The Real Losers In The Zombie Versus Vampire Lab Company Court Battle

(Updated) Right now a dead, bankrupt and corrupt laboratory company is suing an active, morally bankrupt lab company. No matter who eventually wins the court battle all of us– patients, Medicare, insurance companies, not to mention our entire health and legal systems– will lose. Health Diagnostics Laboratory (HDL) is the zombie lab company. After raking…

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A Lab Industry Veteran Deciphers The Zombie Lab Enigma

True Health Diagnostics (THD) is the new, rapidly growing lab that bought the assets of the disgraced and bankrupt Health Diagnostic Lab (HDL). (See the bottom of this story for links to my previous coverage of this story.) I asked one industry veteran for his thoughts on THD’s business practices and the relationship between THD…

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Experts Question Role For At-Home Statin Intolerance Test

A small laboratory company, Boston Heart Diagnostics, has introduced and is promoting “the first and only at-home saliva laboratory developed test” that it says will help identify people who are likely to experience side effects from taking a statin. The company claims the genetic test “helps patients understand how their bodies will process a statin…

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DOJ Settles With Embattled Lab, Criminal Charges For Executives Still Possible

In line with reports last month, Health Diagnostic Laboratory Inc, the embattled lab company, has reached a settlement with the Department of Justice following a lengthy investigation into the company’s business practices, which include giving kickbacks to physicians and additional illegal sales, marketing, and billing practices. HDL will initially pay at least $47 million to the government. … Note to readers: I have received…

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Embattled Lab Nears Settlement With Government Over Kickbacks

Health Diagnostic Laboratory Inc, the embattled lab company, is nearing a $50 million settlement with the Justice Department, according to a Wall Street Journal story by  John Carreyrou. As previously reported here, the federal government is investigating HDL for giving kickbacks to physicians  who use  the company’s tests. Additional allegations suggest a broader pattern of serious misconduct based on questionable sales,…

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2014 Dubious Innovations In Cardiology

  Dubious Innovative Device: Renal Denervation Dubious Innovative Business Strategy: Health Diagnostics Laboratory Dubious Innovations In Leadership (Tie): The European Society of Cardiology and The Institute of Medicine Dubious Innovative Breakthrough Therapy That Never Actually Breaks Through Anything (repeat winner): Cardiac Stem Cell Therapy   Click here to read the full post on Forbes.    …

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Doctor: You’re Going To Have A Heart Attack! Patient: Your Tests Results Are Giving Me A Heart Attack!

Last month I wrote a series of articles (starting here) about HDL, a laboratory company under investigation by the DOJ for giving kickbacks to physicians who use their tests. I reported additional allegations of serious misconduct based on questionable sales, marketing, and billing practices involving unnecessary testing. In response to those articles I’ve received emails from several individuals,…

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