government
Lab to pay $241 million for alleged overcharges
NEWS IN BRIEF — Posted June 6, 2011
Quest Diagnostics, California's largest laboratory provider of medical testing, has agreed to pay the state a $241 million settlement for alleged Medicaid overcharges, according to a May 20 announcement by California Attorney General Kamala D. Harris.
The state sued the lab company in 2005, claiming that the firm significantly overcharged the state's Medicaid program -- Medi-Cal -- and gave illegal kickbacks to physicians, hospitals and medical centers. The lawsuit said Quest charged up to six times more to test Medi-Cal patients than other patients. In a statement, Quest denied any wrongdoing and said its testing services for Medi-Cal were priced appropriately.
The settlement is the highest amount recovered under the state's False Claims Act, according to the attorney general's office.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2011/06/06/gvbf0606.htm.
