COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles announced today that Health Diagnostics Laboratory, Inc. (HDL), of Richmond, Virginia, has agreed to pay $47 million, and laboratory Singulex, Inc. of Alameda, California, has agreed to pay $1.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.
“This marks the culmination of a three year investigation into these corporations, and the individuals that benefited from this fraud can now expect to receive our full attention,” said U.S. Attorney Bill Nettles.
The United States alleged that laboratories HDL, Singulex, and Berkeley induced physicians to refer patients to them for blood tests by paying them process and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles.
The government also alleged that HDL and Singulex conspired with BlueWave to offer kickbacks to physicians on behalf of HDL and Singulex. As a result of those kickbacks, physicians referred patients to HDL, Singulex, and Berkeley for medically unnecessary tests.
As part of these settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services, Office of Inspector General (HHS-OIG).
The government actions announced today stem in large part from two whistleblower complaints filed in the District of South Carolina by Dr. Michael Mayes, Scarlett Lutz, and Kayla Webster under the qui tam provisions of the False Claims Act.
The whistleblowers’ share of the settlements has yet to be determined.
Related Federal Cases
- Health Diagnostics Laboratory, Inc., Kickback Scheme, South Carolina 2023 · Virginia
- Health Diagnostics Laboratory, Inc., Kickback Scheme, South Carolina 2023 · Virginia
- Health Diagnostics Laboratory, Inc., Kickback Scheme, South Carolina 2023 · Virginia
- Health Diagnostics Laboratory, Inc., Kickback Scheme, South Carolina 2023 · Virginia
- Health Diagnostics Laboratory, Inc., Kickback Scheme, South Carolina 2023 · Virginia
Key Facts
- State: South Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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