Millennium Health to pay $256 million over charges that it billed for unnecessary urine, genetic tests

Millennium Health of San Diego has agreed to pay $256 million to the federal government to resolve claims that it billed Medicare, Medicaid and other federal healthcare programs for medically unnecessary urine drug and genetic testing, according to the U.S. Department of Justice.

In addition, Millennium was charged with allegedly providing free urine drug test cups to physicians in exchange for hundreds of dollars of additional and expensive laboratory testing business, the Justice Department said.

Millennium allegedly had standing orders to physicians to authorize excessive numbers of urine drug tests, without first doing an individualized assessment of each patient's needs.

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The claims resolved by Monday's settlement are allegations only; there is no determination of liability.

Millennium, formerly called Millennium Laboratories, is among the largest urine drug testing laboratories in the nation.

The False Claims Act allegations were originally brought as lawsuits by whistleblowers, who will receive more than $30 million from the recovery of urine drug testing claims and $1.48 million for genetic testing claims, according to authorities. The whistleblowers were not named in Monday's announcement.

Millennium agreed to pay $227 million to resolve allegations of unnecessary urine drug testing; $10 million to resolve allegations involving genetic testing that was performed routinely and without an individualized assessment of need; and $19.2 million to the Centers for Medicare and Medicaid Services to resolve urine drug test billing practices, according to the Justice Department.

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In connection with the False Claims Act settlements, Millennium has also entered into a five-year corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General.

"This company has taken the first step toward demonstrating a commitment to compliance by agreeing to make significant changes to its board of directors," said Inspector General Daniel R. Levinson of HHS-OIG.  "Most of the board will be comprised of new independent members."

Twitter: @SusanJMorse