True Health Diagnostics was founded by Chris Grottenthaler in March 2014 in
Frisco, Texas
Frisco is a city in the U.S. state of Texas, located in Collin County, Texas, Collin and Denton County, Texas, Denton counties. It is part of the Dallas–Fort Worth metroplex (DFW) and about from both Dallas Love Field and Dallas/Fort Worth In ...
, a
clinical laboratory
A medical laboratory or clinical laboratory is a laboratory where tests are conducted out on clinical specimens to obtain information about the health of a patient to aid in diagnosis, treatment, and prevention of disease. Clinical medical labor ...
company to sell and develop
medical test
A medical test is a medical procedure performed to detect, diagnose, or monitor diseases, disease processes, susceptibility, or to determine a course of treatment. Medical tests such as, physical and visual exams, diagnostic imaging, genetic ...
s. Grottenthaler had formerly worked in
private equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the co ...
. True Health was
CLIA CLIA may refer to:
* Chemiluminescent immunoassay
* Clinical Laboratory Improvement Amendments
* Cruise Lines International Association
Cruise Lines International Association (CLIA) is a cruise line trade association. It merged with Internationa ...
certified in Texas in August 2014 and offered its first tests in October of that year.
True Health hired several sales representatives who had worked for BlueWave, a
contract sales organization.
However, True Health did not hire any of the owners or leadership of BluWave
In September 2015 True Health purchased the assets of a bankrupt competing company, Health Diagnostic Laboratory, Inc. at a court-supervised
auction
An auction is usually a process of Trade, buying and selling Good (economics), goods or Service (economics), services by offering them up for Bidding, bids, taking bids, and then selling the item to the highest bidder or buying the item from th ...
for $37.1 million. HDL had around 550 employees in Richmond, Virginia, and had gone bankrupt after a $47 million settlement with the US Department of Justice over allegations that HDL had bribed doctors to send business its way; True Health assumed a
corporate integrity agreement that HDL had signed as part of the settlement.
HDL had run sales through BlueWave, and BlueWave had been named as a party in the DoJ Investigation; HDL had split with BlueWave in January 2015 during the investigation, and in April, before it filed for bankruptcy, HDL had tried to get a court to examine whether the former BlueWave employees working with True Health were interfering with HDL's business.
As of November 2015 True Health had retained about 350 of HDL's employees in Richmond and was processing samples in HDL's former CLIA facility.
In July 2016 a post in ''CardiBrief'' called out several sales practices of True Health as examples of "a wide variety of new scams to gain new business...that emerged in the wake of the collapse and bankruptcy of Health Diagnostics Laboratory." These practices included setting up labs that would be majority-owned by the testing company and minority-owned by individual doctors. Those doctors could then financially benefit without owning the lab to send tests, which would be illegal; another was offering management services through
blood-drawing service providers.
In December 2016 the company started offering hospitals and medical practices laboratory management services.
In April 2017 True Health started offering
genetic testing
Genetic testing, also known as DNA testing, is used to identify changes in DNA sequence or chromosome structure. Genetic testing can also include measuring the results of genetic changes, such as RNA analysis as an output of gene expression, or ...
to determine a person's risk for developing
hereditary cancers
A hereditary cancer syndrome (familial/family cancer syndrome, inherited cancer syndrome, cancer predisposition syndrome, cancer syndrome, etc.) is a genetic disorder in which inherited genetic mutations in one or more genes predispose the affect ...
.
In July 2019 True Health Diagnostics filed for Chapter 11 Bankruptcy. According to filings, the company will be laying off about 80 employees. On August 23, 2019, the company filed a Notice of Sale of Property Free and Clear of Liens. No stalking horse bidder has been identified.
References
{{Reflist
External links
Official website
Health care companies based in Texas
Companies based in Frisco, Texas
2014 establishments in Texas
American companies established in 2014