Quest Diagnostics hit with $6 million fine over alleged kickbacks, fraudulent billing, the DOJ says
Scheme involved Berkeley HeartLab of Alameda, California, which Quest acquired in 2011, DOJ said.
New Jersey-based Quest Diagnostics has agreed to pay $6 million to settle allegations that a lab they now own, Berkeley HeartLab of Alameda, California, paid kickbacks to physicians and patients to compel them to use Berkeley for blood testing services. There are also allegations that the lab charged for medically unnecessary tests, the Department of Justice announced.
Quest acquired Berkeley in 2011, and ended the conduct that incited the suit and subsequent settlement.
The DOJ said the complaint alleged Berkeley paid kickbacks to referring physicians, and then disguised them as "process and handling" fees, as well as allegedly paying kickbacks to patients by regularly waiving copayments owed by certain patients who were required to pay for part of their tests. Finally, the complaint said the illegal practices lead to medically unnecessary cardiovascular tests that were charged to federal healthcare programs.
[Also: Running list of notable 2017 healthcare frauds]
Dr. Michael Mayes originally filed the whistleblower lawsuit, and the government "partially intervened" in this case as well as and two related ones. Dr. Mayes' share of the settlement with Quest has not been determined.
Two other labs, Health Diagnostics Laboratory Inc. of Richmond, Virginia, and Singulex Inc., of Alameda, California, had already settled with the government for engaging similar illegal actions to those resolved in the settlement with Quest, the DOJ said.
Twitter: @BethJSanborn
