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LabCorp Settles with State of California Over Kickback Marketing Scheme–Lab Wars

Posted Sep 01 2011 1:46am

Both Quest and LabCorp were doing this and this is funny in the information here from BNET that he had the actual PowerPoint slides.  Quest settled up for $241 image million for their portion of gaining market share. 

Quest Diagnostics Agrees to Settle California Medicaid Suit for $241 Million-Overcharging for Lab Tests

Quest does not appear to be done yet though as now they have a whistle blower alleging even more fraud, maybe a billion and this case is a little more complex and has to do with billing during the time of the Uni-Lab purchase. 

Labcorp is to pay up $49.5 million to settle the claims billed to Medi-Cal during a 14 year period.  A whistle blower was also who brought it to the attention of the State of California in this case as well.  To get a discount doctors were told to refer to LabCorp versus the other lab companies.  BD   

Labcorp’s (LH) $50 million settlement with the California attorney general over a kickback scheme highlights the federal government’s bizarre lack of interest in whether Medicare is being ripped off for hundreds of millions of dollars nationally by companies that provide diagnostic tests for doctors and hospitals.

The scheme wasn’t difficult to figure out — the company described it in PowerPoint slideshows that told employees what “not” to do. Prohibiting employees from breaking the law is fine, of course, but the Labcorp slideshows only made sense if the company knew how to execute a complicated “pull-through” kickback scheme, and knew it was wrong. One PowerPoint had a chapter labelled “Kickbacks.”


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