True Health Diagnostics

Client Profile

THG Holdings LLC (“True Health”) is a laboratory provider of diagnostic and disease management solutions. Headquartered in Frisco, Texas and with operations in Richmond, Virginia, True Health provides nationwide diagnostic testing services through a network of primary care physicians. The Company delivers high clinical value to the medical community through scientific and product innovation by leveraging its unique patient-centric care model to engage patients in their own health management. Starting with a clinical focus on chronic diseases, True Health’s comprehensive testing for biomarkers can indicate risks for chronic diseases earlier than traditional tests.

Situation

Starting in June 2017, True Health became subject to a series of payment suspensions from the Centers for Medicare & Medicaid Services (“CMS”). The withheld Medicare reimbursements accounted for a large portion of the Company’s business, and without this source of revenue, the Company had to absorb continuing financial losses. By June 2019, the Company was facing severe liquidity constraints imposed by the CMS suspensions and was forced to seek relief under Chapter 11.

Solution

After evaluating strategic alternatives, SSG was retained to conduct an expedited marketing process, and solicit offers from potential strategic and financial parties. After an extensive marketing process and discussion with potential interested parties, Quest’s bid for select assets of the business was determined to provide the Debtor’s estate a greater recovery than any other available alternative. SSG’s healthcare industry expertise, experience in identifying buyers, and running an accelerated sale process enabled stakeholders to maximize value.