December 22, 1992 |
In a prospectus published last year, National Health Laboratories attributed its 24% average annual sales growth rate since 1986 to "quality and prompt service, aggressive and responsive sales management and detailed cost controls." Fraud, apparently, also played an important role in the impressive growth of the La Jolla-based medical test lab chain. Now the company's future seems very much in doubt.
December 19, 1992 |
In what federal prosecutors called the largest settlement of a medical fraud case in U.S. history, a La Jolla-based firm Friday agreed to refund $110.4 million to government-funded insurance programs and pay a $1-million fine for charging for unneeded blood tests. U.S. Atty. William Braniff said the fraudulent practices used by National Health Laboratories are widespread in the medical testing industry, and other labs nationwide are under investigation.
June 22, 1993 |
La Jolla-based National Health Laboratories said Monday that it has reached agreement to buy a smaller Massachusetts-based medical testing company in a $257-million deal that would create the nation's second-largest medical laboratories firm. The acquisition of Damon Corp. of Needham Heights, Mass., would also allow National Health to cut costs and strengthen its position in a medical testing industry that is rapidly consolidating, analysts said.
June 29, 1993 |
Vying for market share in the clinical laboratories industry--where bigger is considered better--No. 2-ranked Corning Inc. on Monday dramatically outbid No. 3-ranked National Health Laboratories for a Massachusetts-based competitor. Corning offered more than $370 million, or $23 a share, to acquire Damon Corp., besting National Health's $16-a-share offer last week by 44%. The news sent Damon stock soaring $5.875 to close at $22.625 on the New York Stock Exchange.
September 14, 1993 |
Two of the nation's largest clinical laboratories, including a unit of Tarzana-based Unilab Corp., have agreed to pay the federal government $39.8 million to settle charges that the labs filed thousands of false Medicare claims for unnecessary blood tests, the Justice Department announced Monday. The settlement, under which the Unilab unit will pay $4.8 million, is the latest development in the federal government's heightened crackdown against health care fraud.