CMS Notifies Theranos of CLIA Sanctions That Include Revoking Clinical Laboratory’s CLIA License and a Two-Year Ban on Holmes, Balwani, and Dhawan

Wall Street Journal obtained copy of letter sent by CMS to Theranos, dated March 18, 2016, that notified its executives of sanctions that include revocation of Theranos’ CLIA license and a process by which the medical lab company can appeal Theranos, the high-profile clinical laboratory company, had a day of reckoning yesterday. That’s when The Wall Street Journal (WSJ) published a story revealing that Theranos was sent a letter by the federal Centers for Medicare & Medicaid Services (CMS)...

Prior to IPO Pathology Company Aurora Diagnostics Gets New $335 Million Credit Line

Anatomic pathology firm hopes proposed sale of stock will bring in up to $150 million Anatomic pathology company Aurora Diagnostics, Inc., of Palm Beach Gardens, Florida, just announced a new credit facility that will give it access to as much as $335 million should all conditions be met. Aurora Diagnostics hopes to raise $150 million from an initial public offering (IPO) of its stock, for which it filed registration documents in April. Aurora Diagnostics was founded in June 2006, by former...

James Peter, M.D., Ph.D., Founder of Specialty Laboratories, Dies of Cancer

Peter Built His Company into a Major National Esoteric Laboratory One of laboratory medicine’s most successful scientist-entrepreneurs died last Friday, October 30, 2009. James B. Peter M.D., Ph.D., Founder of Specialty Laboratories, Inc., died in his home in Santa Monica, California of complications from cancer. He was 76 years old. A native of Omaha, Nebraska, it was 1958 when Peter earned his M.D. from St. Louis University. He then went to the University of Minnesota where he earned a Ph.D....

California Whistleblower Lawsuit Ensnares Major Lab Companies

Allegations of false claims implicate discounted client billing practices It’s the first major whistleblower lawsuit in the laboratory industry in recent years. On March 20, California State Attorney General Edmund G. Brown Jr. announced that his state had joined a qui tam lawsuit that alleges a number of laboratories have filed false claims on a “massive” scale, thus defrauding the California Medi-Cal program of “hundreds of millions of dollars.” The unusual...

Molecular Diagnostics News for Hospital Laboratories

When the Golden Gate Chapter of CLMA conducted its sixth annual Spring Fling conference at the Hotel Monaco in San Francisco, California, last Saturday, it offered an outstanding agenda for Bay Area lab managers. Opening the conference was Robert L. Michel, Editor of The Dark Report and Dark Daily. Next on the podium was Alan Wu, Ph.D., who is the Director of Laboratories at San Francisco General Hospital, with a highly entertaining discussion of the role of forensic toxicology and his...
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