American Health Associates: Bankruptcy, FLSA Suit, FCA Settlement

American Health Associates Holdings, Inc., a Davie, Florida-based clinical laboratory company that served more than 3,000 long-term care facilities nationwide, filed for Chapter 11 bankruptcy on April 17, 2026. The American Health Associates bankruptcy followed years of employee complaints about bounced paychecks, a federal wage-and-hour class action, and a False Claims Act settlement with the U.S. Department of Justice.

The Chapter 11 Filing

The petition was filed in the U.S. Bankruptcy Court for the Southern District of Florida under Case No. 26-14825. Company president Christopher Martin signed the filing, with Bradley Shraiberg of Shraiberg Page PA serving as bankruptcy counsel.¹ AHA reported estimated assets and liabilities each in the range of $10 million to $50 million.²

Twelve affiliated entities filed separate petitions the same day, including American Health Holdings LLC, several regional operating entities covering the Midwest, South, Northeast, and West, and Mobile XRay Diagnostics LLC.²

The largest unsecured creditor is Daniel L. Baker, with a claim exceeding $4.8 million. Total unsecured claims topped $4 million, and the estimated number of creditors was between 1 and 49. AHA moved early in the case to keep bank accounts open, use cash collateral, and continue paying employee wages and benefits.²

An Official Committee of Unsecured Creditors was appointed, represented by attorneys Ross R. Hartog and Alan R. Rosenberg.³ The case is assigned to Judge Scott M. Grossman. The meeting of creditors was scheduled for June 26, 2026, which was also set as the general deadline for filing proofs of claim.⁴ The bankruptcy remains active, and the company continues to operate as a debtor-in-possession while pursuing restructuring.

Warning Signs From Employees

Workers had been describing a company in financial trouble for months before the filing. Reviews posted on Indeed through early 2026 alleged that paychecks frequently bounced or arrived late. One reviewer in April 2025 wrote that employees could go an entire week without receiving pay. Others reported a lack of direct deposit, missing pay stubs, and effective hourly rates as low as $6.00 per hour. Several mobile phlebotomists said they were not reimbursed for travel expenses and were sometimes told to purchase their own medical supplies.⁵

Reviewers also described chronic understaffing, constant on-call requirements, and weak human resources support. Multiple reviewers in late 2025 and early 2026 characterized the company as being “on the verge of bankruptcy.”⁶

The 2016 FLSA Class Action

Wage problems at AHA had already reached federal court a decade before the bankruptcy. In October 2016, a mobile phlebotomist filed a class action in the U.S. District Court for the District of South Carolina, Smith v. American Health Associates Inc. (Case No. 6:16-cv-03480-TMC-KFM), alleging systematic underpayment in violation of the Fair Labor Standards Act.⁷

The complaint targeted what the plaintiff called a “hybrid compensation model” combining piece-rate and flat-rate pay, which she said left phlebotomists without minimum wage or proper overtime. The suit also alleged that AHA failed to compensate workers for travel time between specimen pick-up and drop-off locations, effectively requiring off-the-clock work. The named plaintiff further alleged she was fired in retaliation for requesting time off for a scheduled surgery, in violation of the Family and Medical Leave Act.⁷ The available record does not indicate a final ruling, settlement, or class certification in the case.

The 2022 False Claims Act Settlement

In February 2022, AHA agreed to pay $142,718 to resolve allegations that it violated the federal False Claims Act by improperly billing Medicare for diagnostic laboratory tests. The U.S. Attorney’s Office for the Southern District of Ohio said the claims involved tests performed on patients during inpatient stays at Access Hospital Dayton, LLC, between January 2015 and December 2019. Medicare prohibits separate payment for diagnostic testing performed during an inpatient admission, and the government alleged AHA knowingly caused false claims to be submitted for that testing.⁸

AHA had acquired MedLab, the company that provided the lab services to Access Hospital Dayton, in 2014. Its $142,718 payment was part of a larger government recovery of approximately $517,498, which included a separate earlier settlement with Access Hospital Dayton itself. The DOJ noted the claims were allegations only, with no determination of liability.⁸

What AHA Did and How Big It Was

AHA described itself as the largest clinical laboratory provider serving the long-term care market in the United States. It operated 16 CLIA-certified reference laboratories and more than 35 satellite sites, serving over 3,000 long-term care facilities along with hospitals, physician offices, and home health agencies.⁹ Its laboratories ran chemistry, hematology, immunology, molecular, and microbiology testing, and the company also operated mobile imaging services including X-ray, ultrasound, and EKG.¹⁰ AHA employed more than 1,000 mobile phlebotomists classified as W-2 employees.¹¹

1
Bondoro. American Health Associates Holdings Filing Alert
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WhatNow. A US Clinical Lab Network Operating 3,000 Facilities Files for Chapter 11 Bankruptcy
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Bankruptcy Observer. American Health Associates Holdings
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Inforuptcy. American Health Associates Holdings, Inc.
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Indeed. American Health Associates Reviews
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Indeed. American Health Associates Reviews – Cincinnati, OH
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ClassAction.org. Suit Filed Against American Health Associates Over FLSA Violations
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U.S. Department of Justice. Diagnostic Testing Company Agrees to Resolve Claims for Improperly Billed Testing
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American Health Associates. American Health Associates
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American Health Associates. Lab Services
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