Friday, September 11, 2015

Texas Firm Buys Health Diagnostic Laboratory

The one-time high-flying Richmond company faces bankruptcy, lawsuits.

Posted By on Fri, Sep 11, 2015 at 3:02 PM

Bankrupt Health Diagnostic Laboratory Inc. has found a new owner: True Health Diagnostics L.L.C.

The Frisco, Texas-based company agreed to pay $37.1 million for all of HDL after raising its initial bid by more than $5 million.

Once one of Richmond’s rising business stars, HDL got caught up in fraud probes by the federal government for paying doctors up to $17 each time they ordered a blood test from HDL.

HDL agreed to pay a fine of $47 million while admitting no guilt, but faces a number of lawsuits from insurance firms, which claim they were defrauded, and from individuals.

Tonya Mallory, the charismatic founder of the firm, left unexpectedly about a year ago after the Wall Street Journal broke news of the probe as part of a Pulitzer Prize-winning series on Medicare fraud. HDL declared bankruptcy earlier this year and put itself up for sale.

Its auction was coordinated under court approval by the Richmond law firm Hunton & Williams. Several bids were presented.

U.S. Bankruptcy Judge Kevin R. Huennekens has scheduled a hearing Sept. 16 to consider the purchase.


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