Debtwire.com
11-Jun-15 - 12:12
Millennium Health attempted to put its regulatory headaches
to rest last week by reaching a settlement with various
government agencies over its business practices. But the drug
testing company and sponsor TA Associates could be the
target of a new round of misconduct allegations, this
time from investors, according to four sources familiar with the
situation.
The government settlement last week totaled around USD
250m, and was made with multiple agencies over
investigations that date back several years, the sources
noted. The pact purportedly resolves “all federal and state
issues involving the company,” according to a company
statement emailed to Debtwire.
The statement went on to say that “while the details are not
yet finalized, this allows Millennium Health to move
forward as part of the federal health care program.”
From an investor standpoint, the USD 250m figure is a shock. The
company earlier this year had been relaying that it faced only
USD 20,000 worth of claims from Center for Medicare and
Medicaid Services (CMS)
Millennium also received a letter from CMS warning its Medicare license
may be revoked as a result of the investigation, the sources
added.
“If they [Millennium] have like 15 years to pay it they’ll be
fine…if they have one year they’re done. But I don’t think
the government will want to put a bullet in their head,” said
one of the sources.
11-Jun-15 - 12:12
Millennium Health attempted to put its regulatory headaches
to rest last week by reaching a settlement with various
government agencies over its business practices. But the drug
testing company and sponsor TA Associates could be the
target of a new round of misconduct allegations, this
time from investors, according to four sources familiar with the
situation.
The government settlement last week totaled around USD
250m, and was made with multiple agencies over
investigations that date back several years, the sources
noted. The pact purportedly resolves “all federal and state
issues involving the company,” according to a company
statement emailed to Debtwire.
The statement went on to say that “while the details are not
yet finalized, this allows Millennium Health to move
forward as part of the federal health care program.”
From an investor standpoint, the USD 250m figure is a shock. The
company earlier this year had been relaying that it faced only
USD 20,000 worth of claims from Center for Medicare and
Medicaid Services (CMS)
Millennium also received a letter from CMS warning its Medicare license
may be revoked as a result of the investigation, the sources
added.
“If they [Millennium] have like 15 years to pay it they’ll be
fine…if they have one year they’re done. But I don’t think
the government will want to put a bullet in their head,” said
one of the sources.