More Trouble For Theranos

Theranos lab has been under the microscope recently as the company's operations have been criticized by regulators. Earlier this year, the diagnostics lab was forced to abandon the use of its blood collection vials after the Food and Drug Administration

the devices were "uncleared medical devices." The company has since abandoned the use of the vials until they are cleared, but many analysts expect that outsourcing the tests has come at a cost. However, with one fire under control, another sprung up this week after US health inspectors

finding serious deficiencies at Theranos' Northern California lab.

While the inspectors have not yet made their findings public, it's clear that Theranos will have some work to do in order to get its operations up to snuff and continue functioning. The deficiencies found in the most recent evaluation, if not addressed, could cause the diagnostics firm to be suspended from the Medicare program, which would deliver a huge blow to the company's bottom line. Expensive Mistake In order to cope with regulatory concerns, Theranos has begun outsourcing many of its blood tests. The firm currently uses the University of California, San Francisco in order perform routine tests and pricing data suggests that the costs to Theranos are significant. A metabolic panel costs over $300 at UCSF, while performing the same test at Theranos' costs just $7.19.

Pharmaceutical chain

is feeling the effects of Theranos' troubles as the drugstore is Theranos' main retail partner. The company has 41 blood-drawing centers across the US where Theranos' technology is being used, but now the company must decide whether to continue with expansion plans or consider closing the centers in the wake of the regulators' findings.