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That $250 Million Settlement: because ML billed govt for dead people

Discussion in 'Millennium Laboratories' started by Anonymous, Jun 15, 2015 at 8:43 PM.

  1. Anonymous

    Anonymous Guest

    ML billed CMS for testing on 60 dead people!!!!! Good god. What a bunch of scumbags! Govt should have fined them more -- and thrown 'em in jail.

    Millennium Loan Plunges as Lab Tester Negotiates U.S. Settlement
    2015-06-15 22:54:59.581 GMT

    By Laura J. Keller
    (Bloomberg) -- Millennium Health LLC’s $1.8 billion loan
    tumbled to just over half of face value as investor concern
    grows that the company’s cash will be squeezed by a government
    settlement of a billing dispute.
    Millennium, which sells urine-testing services to monitor
    prescription drug use and potential abuse, disclosed to some of
    its lenders that a draft agreement to settle with regulators and
    the U.S. Justice Department calls for it to pay $250 million,
    said two people with knowledge of the matter, who asked not to
    be identified because they weren’t authorized to speak publicly.
    The market value of the loan fell 2.6 cents on the dollar
    to 52.1 cents on Monday, extending losses in six of the last
    seven weeks that brought the debt down from above face value,
    according to quotes compiled by Bloomberg.
    The company faces the fine after a 31 percent decline in
    one measure of its first-quarter earnings, the people said.
    Millennium, owned by its management team and private-equity
    firm TA Associates Management, has told investors it’s engaged
    in a dispute with the Centers for Medicare & Medicaid Services
    over alleged improper billing of the government health-care
    agency for approximately 60 deceased people and unauthorized
    documentation in other cases, the people with knowledge of the
    disclosures said. The agency had threatened to revoke its
    ability to bill CMS, the people said.

    ‘Move Forward’

    “Millennium Health is very pleased to have reached an
    agreement in principle to resolve all federal and state issues
    involving the company,” Nicole Beckstrand, a spokeswoman for
    San Diego-based Millennium, said by telephone. “While the
    details are not finalized, this allows Millennium Health to move
    forward as part of the federal health-care program.”
    Beckstrand declined to comment further. Marcia O’Carroll, a
    spokeswoman at TA Associates, declined to comment. A
    representative for CMS declined to comment, saying that
    negotiations with Millennium are “fluid” and confidential.
    The Wall Street Journal reported the size of the
    preliminary settlement on Sunday.
    The labs tester limits access to its financial performance
    information, restricting data to current and approved
    prospective lenders, the people said.
    First-quarter earnings before interest, taxes, depreciation
    and amortization declined to $68 million from $98.4 million in
    the year-earlier period, said two of the people. For the 12
    months through March 31, Ebitda decreased to about $358 million,
    compared with $387.5 million for the 2014 calendar year, the
    people said.

    Sales, Cash

    Revenue dropped by less than $15 million to about $665
    million, the people said.
    Millennium’s cash balance was $69.4 million on March 31,
    said one of the people. It had been $67.4 million at the end of
    2014, said two of the people.
    The company’s $50 million revolving loan due April 2019 had
    no borrowings as of March 31, said one of the people.
    The $1.78 billion term loan B due April 2021, issued when
    the company was known as Millennium Labs, had begun last week
    quoted at 72.4 cents on the dollar, according to data compiled
    by Bloomberg. Only six term loans of $500 million or more that
    are tracked by Bloomberg trade at less than 55 cents on the
    dollar. These include obligations of Sabine Oil & Gas Corp. and
    Walter Energy Inc., both of which have missed debt payments.

    For Related News and Information:
    Drug Tester Millennium Has Tentative Deal With Regulators
    Risky Loans Shunned by Banks Are Booming in Wall Street’s Shadow
    Leveraged Loan Market Asked to Stop Pretending Rates Aren’t Low

    --With assistance from Caroline Chen in San Francisco.
  2. Anonymous

    Anonymous Guest

    $250 million fine for testing and billing 60 dead people? I love that spin. Hahahahaha!
  3. Anonymous

    Anonymous Guest

  4. Anonymous

    Anonymous Guest

  5. Anonymous

    Anonymous Guest

  6. Anonymous

    Anonymous Guest

    What concerns me is did they have dirt tests? Nothing like dead people and dirty urine! They think that because they are dead they can get away with anything!
  7. Anonymous

    Anonymous Guest

  8. anonymous

    anonymous Guest

    Yeah, I know I responded to an employee or someone who failed to make it past his/her 5th Grade Social Studies class but sometimes you just have to call out a person when he/she is ignorant. I am not the smartest person on this board by any means but bringing Obamacare into this discussion is the work of lazy people who don't want to learn the facts.