True Health Diagnostics
| Company type | Private |
|---|---|
| Industry | Clinical laboratory |
| Founded | 1 March 2014 in Frisco, Texas, United States |
| Founder | Chris Grottenthaler |
| Headquarters | Frisco , United States |
| Products | Medical testing services, genetic testing, laboratory management solutions |
Number of employees | Approximately 350 (as of November 2015) |
| Website | truehealthdiag |
True Health Diagnostics was established in March 2014 by Chris Grottenthaler in Frisco, Texas, operating as a clinical laboratory enterprise specializing in the creation and distribution of medical testing services. Grottenthaler, who had a background in private equity, obtained CLIA certification for the company in Texas by August 2014, with the initial tests becoming available by October of the same year.
The organization sourced its sales personnel from BlueWave, a contract sales firm, although it did not bring on board BlueWave’s executive management. In September 2015, True Health purchased the assets of its insolvent rival, Health Diagnostic Laboratory, Inc. (HDL), for $37.1 million through a court-approved auction. HDL, which had a workforce of approximately 550 employees based in Richmond, Virginia, had filed for bankruptcy following a $47 million settlement with the US Department of Justice due to accusations of bribery aimed at increasing test referrals. As part of this acquisition, True Health took on HDL’s corporate integrity agreement.
Previously, HDL had utilized BlueWave for its sales efforts but ended this relationship amid the DOJ’s investigation. Prior to declaring bankruptcy, HDL sought to challenge whether former BlueWave staff now employed by True Health were interfering with its operations. By November 2015, True Health had integrated around 350 former HDL employees and was functioning out of HDL’s previous CLIA-certified laboratory.
In July 2016, industry analysts raised concerns about certain sales tactics employed by True Health, such as establishing laboratories with minority physician ownership to bypass regulatory constraints and providing management services via blood-drawing vendors.
By December 2016, True Health broadened its portfolio to include laboratory management solutions tailored for hospitals and medical practices. In April 2017, the company launched genetic testing aimed at assessing hereditary cancer risk.
True Health filed for Chapter 11 bankruptcy protection in July 2019 and announced workforce reductions affecting roughly 80 staff members. By August 23, 2019, it had submitted a Notice of Sale of Property Free and Clear of Liens but had yet to designate a stalking horse bidder.