Truth Diagnostics Builds a Better, Boutique Lab Model

 

Truth Diagnostics got its start, and its name, because the startup’s partners believed in a better business model: a boutique lab with personalized services for physicians and smaller clinics and transparency in customer relations.

We all worked together at another clinical lab, and we found the whole industry kind of dissatisfying. We used to talk about the way things should be done,” said Sonni Foster, co-founder and CEO. “We didn’t want any part of the questionable decisions some labs made in billing health insurers.”

Foster, Ioan Negulescu and John Wilson opened for business in 2023.

The business gives them the freedom to do things their way, including solving client problems that a larger lab might view as unprofitable. For example, a Metairie pediatrician wanted a diagnostic test for slapped cheek disease, a viral infection that turns children’s cheeks bright red.

Truth Diagnostics obtained the molecular targets that identify the virus, and Negulescu, who has a background in research, developed the test. Strong physician relationships established from their previous lab work, word of mouth, and fast turnaround times – if they can’t complete the tests in 24 hours, they don’t accept the job – helped the lab carve out a niche with smaller practices, clinics and urgent care centers.

“We believe in personal service,” Negulescu said. “When a customer calls, we answer the phone ourselves. You don’t get shuffled off to a call center somewhere.”

The lab’s services include:

• Clinical chemistry (blood work, hormones, enzymes).
• Hematology (blood counts).
• Molecular testing for infectious diseases.

Two years in, Wilson, who handles operations and logistics, and Negulescu, who oversees the blood and toxicology testing, work full-time at Truth. Foster, the CEO, works at another lab. But the founders hope their efforts to become an in-network provider for more health insurers will change that.

Wilson said they wouldn’t be where they are now without the LSU Innovation Park staff.

“They bent over backwards to accommodate us. They found a space that fit our needs, rewired it for our lab’s specialized equipment and provided some critical business counseling,” Wilson said.

When Truth wanted to buy an Abbott Architect, which runs chemistry, blood and hormone panels, the startup needed help getting a loan. The founders turned to Jason Boudreaux, the park’s associate director of entrepreneurial services, and Adam McCloskey, director of the Louisiana Small Business Development Center, for help. Boudreaux and McCloskey walked Truth through the U.S. Small Business Administration-backed loan program. Among other things, they helped the company file a detailed business plan, a loan repayment strategy, and financial statements.

"Truth's persistence paid off. Through consistent effort and regular meetings, they successfully met the requirements for securing an SBA loan and assembled a strong, well-prepared package to present to the bank," Boudreaux said.

Foster said the business still faces challenges, such as navigating the insurance reimbursement labyrinth, regulatory and billing hurdles, and expanding the customer base.

“We’re not building to sell. We’re committed for the long term,” she said.