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Quest Diagnostics Subsidiary Buys True Health Dx Assets for $8.5M

NEW YORK — Quest Diagnostics, through its Cleveland HeartLab subsidiary, has entered into an agreement to purchase for $8.5 million certain assets of bankrupt testing firm True Health Diagnostics.

A Quest spokesperson said in an email that it will not be acquiring any of True Health's facilities or staff and that it expected the acquisition to expand the reach of its cardio-metabolic diagnostic services to new groups of patients and providers.

Frisco, Texas-based True Health in July filed for Chapter 11 bankruptcy protection following the suspension of its Medicare reimbursement payments by the Centers for Medicare and Medicaid Services.

CMS suspended reimbursement to True Health after audits in 2017 found what the agency alleged were fraudulent claims filed by the company.