įunding: The authors gratefully acknowledge the funding support from the Center for Management Innovations in Healthcare at the Eller College of Management, from the Rogers College of Law, and from the College of Medicine, all at the University of Arizona.Ĭompeting interests: The authors have declared that no competing interests exist.Īlthough insurance enhances welfare by laying off risk some have estimated that insurance may do more harm than good. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.ĭata Availability: All data is available at. Received: OctoAccepted: MaPublished: April 17, 2020Ĭopyright: © 2020 Robertson et al. PLoS ONE 15(4):Įditor: Jason Anthony Aimone, Baylor University, UNITED STATES They include family members of one of HDL’s original investors, Tipton Golias, as well as entities tied to Floyd Calhoun Dent, who ran the third-party sales company that peddled HDL’s blood tests.Citation: Robertson CT, Yuan A, Zhang W, Joiner K (2020) Distinguishing moral hazard from access for high-cost healthcare under insurance.
#EASE DIAGNOSTICS BANKRUPT TRIAL#
Meanwhile, in Richmond federal court, HDL’s long-running bankruptcy case continues on more than four years after it began.Īttorney Richard Kanowitz of the Cooley law firm, who represents both the unsecured creditors committee in the True Health case and the trustee in HDL’s ongoing bankruptcy case, said the next notable step in HDL’s case is a trial scheduled for February 2020, in which the trustee is suing former HDL insiders. It ultimately opted for a sale, with Cleveland Heartlab emerging as the winning suitor after the offer deadline on Sept. It has continued to fight the federal government over those reimbursements and had lined up interim financing to maintain its operations and employees while a sale or restructuring could occur. It listed assets of $10 million to $50 million. It listed in its initial Chapter 11 filing between $100 million and $500 million owed to untold hundreds of creditors. Medicare paybacks accounted for about 30 percent of True Health’s business and the company said it had missed out on $21 million in reimbursements in the last two years, while being saddled with $174 million in debt. True Health filed for bankruptcy protection in late July, after it said it was cut off for the second time in two years from Medicare reimbursements due to fraud allegations and overpayment of tens of millions of dollars. While the building was constructed as HDL’s headquarters and had been partly owned by HDL, True Health never occupied the entire structure and its landlords eventually added VCU as a sizable co-tenant. Ventas bought the 262,000-square-foot structure in 2017 for $92 million. The building, known as Biotech 8, is owned by Ventas, a Chicago-based publicly traded REIT. True Health’s chief restructuring officer Cliff Zucker, who was brought on to handle the bankruptcy, could not be reached Tuesday. (Submitted)Ĭleveland Heartlab does, however, intend to purchase much of the lab’s equipment, court documents show. True Health processed blood tests aimed at the early detection of diseases.
Fifth St., which True Health has been leasing since the 2015 deal. 1, the sale appears to leave in limbo True Health’s 100,000-square-foot operation in the former HDL lab at 737 N. Now four years later, with True Health having fallen into bankruptcy this summer, the company is unloading the bulk of its assets – including some of what it bought from HDL – to a competitor for $8.5 million.Ī bankruptcy court judge in Delaware last week approved the sale of much of True Health parent company THG Holdings to Cleveland Heartlab, a subsidiary of medical lab giant Quest Diagnostics. It instantly quadrupled the size of True Health, which at the time was a hungry, year-old company. That deal included inheriting hundreds of employees in HDL’s sprawling lab in downtown Richmond. In 2015, Texas-based True Health Diagnostics took a leap to buy the assets of toppled Richmond blood testing firm Health Diagnostic Laboratory out of bankruptcy for $37 million. True Health’s facility at 737 N Fifth St., which was built by the now-collapsed Health Diagnostic Laboratory.
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