DEERFIELD, Ill. - Walgreens on Thursday suspended some ties to its blood-testing laboratory partner Theranos.
The genesis for the announcement was a declaration from the Centers for Medicare and Medicaid Services that "the deficient practices of the laboratory [in Newark, Calif.] pose immediate jeopardy to patient health and safety." Immediate jeopardy means the laboratory's non-compliance "has already caused, is causing, or is likely to cause, at any time, serious injury or harm, or death, to individuals served by the laboratory or to the health and safety of the general public."
In light of the letter dated Jan. 25 from CMS to Theranos, Walgreens reported that it has informed Theranos that it must immediately cease sending any clinical laboratory tests provided through Theranos Wellness Centers at Walgreens to the Theranos lab in Newark, Calif., for analysis.
In addition, Walgreens is suspending Theranos laboratory services at its Palo Alto, Calif., store, effective immediately.
Walgreens informed Theranos that tests collected at 40 Theranos Wellness Centers located at stores in Arizona must be sent only to Theranos’ certified lab in the Phoenix area or to an accredited third-party lab for analysis. No patient samples will be sent to the Newark lab until all issues raised by CMS have been fully resolved.
Walgreens had placed its expansion plans with Theranos on hold in October after completing its Phoenix market rollout following reports in the Wall Street Journal that questioned the accuracy of the company's blood tests.