In a statement issued Thursday, the blood-testing company Theranos, which has stretched the adjective "beleaguered" to its very limits, said it would appeal the harsh penalties the Centers for Medicare & Medicaid Services levied on it last month in response to what the agency called life-threatening deficiencies at the company's California lab.
Theranos said it has filed an intent to appeal the sanctions with CMS.
"Theranos is not conducting patient testing at its Newark facility," the statement said. "In addition, since CMS originally announced the imposition of sanctions, Theranos has made substantial progress toward correcting the deficiencies CMS identified, including appointing new laboratory leadership; enhancing Theranos’ clinical policies and procedures; and revamping training programs.
"While the appeal is pending, Theranos intends to continue communicating with CMS regarding the possibility of reaching a mutually agreeable resolution to this matter."
CMS had previously said Theranos could “begin negotiations” with the agency. Any agreement would be based on the ability of Theranos to “remove immediate jeopardy” to patients, the agency said, as well as other factors, such as the severity of the lab's deficiencies and “the overall compliance history of the laboratory.”