We appear to be entering the final chapter of the fraud known as Theranos which at one point captured Wall Street’s eye with the promise of unwarranted character affiliations and humorous magazine photo shoots.
Theranos founder and chief value pillager Elizabeth Holmes, who saw her net worth vanish from $4.5 billion to zilch, has been banned for two years from owning or even operating any sort of medical laboratory.
Last night on the company website Theranos notified investors that it “received notice from the Centers for Medicare & Medicaid Services regarding the imposition of sanctions arising from the 2015 survey of its Newark California laboratory.”
The sanction Theranos lists from the CMS are as follows:
–Revocation of the laboratory’s CLIA certificate which, as dictated by the regulations, includes a prohibition on owners and operators of the lab from owning, operating or directing a lab for at least two years from the date of revocation
–Limitation of the laboratory’s CLIA certificate for the specialty of hematology
–A Civil Money Penalty
–A Directed Portion of a Plan of Correction
–Suspension of the laboratory’s approval to receive Medicare and Medicaid payments for any services performed for the specialty of hematology
–Cancellation of the laboratory’s approval to receive Medicare and Medicaid payments for all laboratory services
Not much of a shock considering the once over-valued but always full-of-lies startup blood testing company had recently voided years of lab results because all tests using proprietary technology were bullshit.
What we’ve said previously on the matter:
“Theranos’ insane ‘valuation’ was achieved on the basis of doing only 6% of blood tests in house (all of them erroneously, we now learn), and outsourcing 94% to companies whose products actually worked and many of whom likely had a far lower valuation that the one at which a bunch of idiot billionaires ‘valued’ Holmes worthless company.“
Further, Holmes’ new 2 year ban comes on the heels of not only her firm’s lack of due diligence during a period when the firm garnered a ridiculous $9 billion valuation, but also on the heels of a fawning media and drooling celebrity base that included the Clintons.
And now for risking roughly 900K lives each year on a bonk premise of real testing even though all tests were garbage, Ms. Wanna-Be-Steve-Jobs will be banned from entering a lab for 2 years.
Full Release:
Palo Alto, CA — July 7, 2016 — Theranos today announced it received notice from the Centers for Medicare & Medicaid Services (CMS) regarding the imposition of sanctions arising from the 2015 survey of its Newark, California laboratory.
Those sanctions include:
–Revocation of the laboratory’s CLIA certificate which, as dictated by the regulations, includes a prohibition on owners and operators of the lab from owning, operating or directing a lab for at least two years from the date of revocation
–Limitation of the laboratory’s CLIA certificate for the specialty of hematology
–A Civil Money Penalty
–A Directed Portion of a Plan of Correction
–Suspension of the laboratory’s approval to receive Medicare and Medicaid payments for any services performed for the specialty of hematology–Cancellation of the laboratory’s approval to receive Medicare and Medicaid payments for all laboratory services
“We accept full responsibility for the issues at our laboratory in Newark, California, and have already worked to undertake comprehensive remedial actions.
Those actions include shutting down and subsequently rebuilding the Newark lab from the ground up, rebuilding quality systems, adding highly experienced leadership, personnel and experts, and implementing enhanced quality and training procedures,” said Elizabeth Holmes, Theranos founder and CEO. “While we are disappointed by CMS’ decision, we take these matters very seriously and are committed to fully resolving all outstanding issues with CMS and to demonstrating our dedication to the highest standards of quality and compliance.”
While the revocation would not take effect for 60 days, the company will not conduct any patient testing in the Newark lab until further notice.
During this period, the company will continue to work with CMS to resolve and remediate outstanding issues in the Newark lab, and will continue to provide services to its customers through its Arizona lab.
About Theranos
Theranos, Inc. is a consumer health technology company founded in 2003 by Elizabeth Holmes. Theranos’ mission is to make actionable information accessible to everyone at the time it matters most. By doing so, Theranos is working to facilitate the early detection and prevention of disease and to empower people everywhere to live their best lives.
Theranos offers lab tests in convenient locations in its Wellness Centers in Arizona and California.
Media Contact:
Theranos Public Relations
pr@theranos.com
via http://ift.tt/29tENf6 Tyler Durden