Millennium Lab Files For Bankruptcy

by San Antonio Attorney

After settling federal claims for fraudulently billing the government through running urine tests on the deceased and commencing checkups with senior citizens for unnecessary purposes, Millennium Laboratory files for Chapter 11 bankruptcy.

The reorganization plan filed last Tuesday in Delaware has earned the support of key lenders.

Millennium, the largest drug testing laboratory will abide by the reorganization plan and will pay $256 million to settle the government claims.

This move is also done while receiving the benefit of eliminating $1.2 billion in debt from its record.

The reorganization is set to be completed by the end of the year.

The $1.75 billion in debt will be replaced by a new $600 million term loan following the reorganization plan, as stated by the company representative through court papers last Tuesday.

A federal complaint was filed in March accusing the company for charging unnecessary procedures without providing any benefits to the patient.

The test was initially designed to look for prescription drugs and illegal substances.  However, Millennium laboratory encouraged excessive testing, particularly including the screen tests for other substances that the patients weren’t even taking.

Millennium earned more than $630 million from Medicare through drug testing procedures from 2007-2014, as reflected by the complaint filed in Massachusetts court.

One of the allegations against the company was the billing of Medicare, which was worth $15 million to test for PCP.

PCP is otherwise known as angel dust.  This substance was not even present among the patients tested.  The company billed another $55 million for testing anti-depressants in a patient’s system.

Unfortunately, these types of antidepressants are rarely found in a person.

Millennium also marketed their services falsely by displaying photos of the same person and competitors in body bags as featured in a slideshow, according to the Massachusetts complaint.

Leave a Comment

Previous post:

Next post: