Sept. 25, 2015—U.S. bankruptcy judge Kevin R. Huennekens has given final approval for the $37.1 million sale of substantially all of the business assets of Health Diagnostic Laboratory to True Health Diagnostics. The two companies anticipate completing the transaction by the end of September.
“We are extremely pleased that the bankruptcy judge has approved the sale of HDL Inc. to True Health. The diagnostic technology developed by HDL Inc. is among the best in the business, and we look forward to utilizing it in combination with our existing technologies to offer innovative, state-of-the-art medical science to physicians and their patients,” True Health CEO Chris Grottenthaler said in a statement.
“We are adopting an exacting corporate compliance program that, along with rigorous controls and intensive sales force training, will ensure that True Health will meet and exceed all regulatory requirements. We look forward to the steady, measured growth of our company and delivering excellent service to those using our services,” he added.
In April, HDL agreed to a settlement with the Justice Department to pay $47 million in fines. The federal government said the company violated the False Claims Act by paying physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.
HDL CEO and president Joe McConnell commented: “Given the circumstances, the sale of HDL Inc. to True Health is an exciting outcome for both our employees and the continued use of HDL Inc.’s technology in the ongoing battle against cardiovascular disease and diabetes.”