True Health Gets Nod for $7.9 Million Bankruptcy Financing

Bankrupt diagnostic laboratory True Health Diagnostics LLC won interim approval for up to $7.9 million in financing after agreeing to remove language in documents that pushed for a quick restart of suspended Medicare reimbursements.

The testing lab filed for Chapter 11 bankruptcy protection in Delaware July 30, citing the federal government’s withholding of Medicare payments as the reason for the bankruptcy. The company has been negotiating for more than two years with the federal government after the Centers for Medicare & Medicaid Services (CMS) suspended reimbursements for services in 2017.

U.S. Bankruptcy Judge John T. Dorsey pushed back at language ...