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The home for VPR's coverage of health and health industry issues affecting the state of Vermont.

Regulators Approve Emergency Sale Of Burlington Labs

State regulators have approved the emergency sale of Burlington Labs, a drug-screening company at the center of a Medicaid fraud investigation.

Al Gobeille  is chairman of the Green Mountain Care Board, the panel that approved the sale of Burlington Labs to a group of investors. Gobeille says it was clear that company in its current structure was headed for bankruptcy.

“If it had closed, patients wouldn’t have been able to get the necessary testing that they need to maintain their treatment or to maintain their employment,” Gobeille said.

Gobeille said he was also worried about the jobs of the 140 Vermonters employed by the Burlington Labs.

Government officials, including Burlington Mayor Miro Weingerger and Health Commissioner Harry Chen expressed support for the emergency sale, which Burlington Labs officials said was necessary to save the company's finances. The company was reportedlyoperating at a loss of $400,000 per month.

The company could be on the hook for a $6.5 million settlement after an investigation into Medicaid fraud by the attorney general’s office. It’s expected to be the largest settlement on a Medicaid fraud investigation in the state’s history.

Under the board’s ruling, Burlington Labs must reach a settlement with the attorney general’s office before the sale goes through.

VPR's Peter Hirschfeld contributed to this report.

Taylor was VPR's digital reporter from 2013 until 2017. After growing up in Vermont, he graduated with at BA in Journalism from Northeastern University in 2013.
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