Millennium Health Files For Bankruptcy In Wake Of Settlement With Federal Government
Millennium Health, one of the largest drug-testing labs in the U.S., agreed last month to pay the federal government $256 million in a settlement regarding allegations of improper billing and overtesting.
The Wall Street Journal:
Millennium Health Files For Chapter 11 Bankruptcy
Millennium Health LLC, one of the nation’s largest drug-testing laboratories, has filed for chapter 11 bankruptcy protection, a month after agreeing to pay $256 million to settle allegations that it billed the federal government for unnecessary tests. The San Diego-based company filed for bankruptcy with a lender-backed plan that will slash $1.15 billion in debt off its books. Under the terms of the so-called prepackaged plan, Millennium’s lenders, owed $1.75 billion, will swap their debt for 100% of the equity in a reorganized company plus $600 million in new debt. (Fitzgerald and Brickley, 11/10)
Millennium Health Seeks Bankruptcy After Overbilling Statement
Millennium Health, one of the largest urine drug testing laboratories in the United States, filed for Chapter 11 bankruptcy on Tuesday, a month after agreeing [to] a $256 million settlement to resolve federal allegations of health care fraud. The company, formerly Millennium Laboratories, allegedly billed Medicare, Medicaid and other federal healthcare programs for medically unnecessary testing. (Hals and Rucinski, 11/10)
Millennium Lab Files Bankruptcy After Settling With U.S.
Millennium Health LLC filed for bankruptcy after settling federal claims that it improperly billed the government for running urine tests on dead people and checking senior citizens for angel dust. The prepackaged reorganization plan filed Tuesday in Delaware already has the support of key lenders. Under the proposal, Millennium, the largest U.S. drug-testing lab, will pay $256 million to settle the government claims while eliminating $1.2 billion in debt from its balance sheet. (Keller, Kary and McCarty, 11/10)