It just keeps getting worse for Theranos. Federal regulators are now proposing banning CEO Elizabeth Holmes and president Sunny Balwani from owning or operating another blood-testing lab for at least two years, the Wall Street Journal reports. That information comes via a letter from the Centers for Medicare and Medicaid Services, or CMS, which hasn't been released to the public.
In January, federal inspectors investigated Theranos's lab in Newark, CA, and said they found "deficient practices" that pose "immediate jeopardy to patient health and safety." The company was given 10 days to respond, and as far we know, CMS is still reviewing the response.
Here's a statement from Theranos's spokeswoman, which was provided to the Wall Street Journal. The company did not immediately respond to Fast Company's request for additional comment:
"Due to the comprehensive nature of the corrective measures we've taken over the past several months, which has been affirmed by several experts, we are hopeful that CMS won't impose sanctions. But if they do, we will work with CMS to address all of their concerns."