Precision Toxicology, Unnecessary Urine Drug Testing, Maryland 2022

Washington, D.C.

Precision Toxicology, doing business as Precision Diagnostics, has agreed to pay $27 million to resolve alleged violations of the False Claims Act and similar state statutes for billing Medicare, Medicaid and other federal health care programs for medically unnecessary urine drug tests, and for providing free items to physicians who agreed to refer expensive laboratory testing business to Precision.

According to the settlement agreement, the United States alleged that Precision systematically billed federal health care programs for excessive and unnecessary urine drug testing from January 1, 2013, through December 31, 2022.

The United States contended that Precision caused physicians to order excessive numbers of urine drug tests, in part through the promotion of “custom profiles,” which were, in effect, standing orders that caused physicians to order a large number of tests without an individualized assessment of each patient’s needs.

The United States also alleged that Precision’s provision of free point of care urine drug test cups to physicians—expressly conditioned on the physicians’ agreement to return the urine specimens to Precision for additional testing—violated the Anti-Kickback Statute.

“We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients.  Taxpayers deserve nothing less, “said U.S. Attorney for the District of Maryland Erek L. Barron.

Precision, headquartered in San Diego, is one of the nation’s largest urine drug testing laboratories.

“When laboratories ignore medical needs and increase testing for their own profits, the Department of Justice will act to protect the taxpayers and the integrity of our vital federal health programs,” said Acting U.S. Attorney for the District of Colorado Matthew Kirsch.

In connection with the False Claims Act settlement, Precision has also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

“Today’s settlement demonstrates that investigating violations of the False Claims Act is a top priority,” said Maureen R. Dixon, Special Agent in Charge for HHS-OIG.  “HHS-OIG will continue to work with the Department of Justice to ensure the integrity of federal health care programs.”

Of the settlement amount, $18.2 million will be paid to the United States and the remainder will be paid to the states of Maryland, Illinois, Minnesota, Virginia, Georgia and Colorado for the states’ share of Medicaid.

The False Claims Act allegations resolved by this settlement were originally brought in three lawsuits filed by whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.

The settlement also includes a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

Precision Toxicology, doing business as Precision Diagnostics, is one of the nation’s largest urine drug testing laboratories.

Source: https://www.justice.gov/usao-md/pr/precision-toxicology-agrees-pay-27-million-resolve-allegations-unnecessary-drug-testing