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Nevada to Receive Up to $335,000
Carson City, NV — Today, Nevada Attorney General Aaron D. Ford announced that Nevada has joined with other states and the federal government to settle allegations of Medicaid fraud involving MD Spine Solutions LLC, d/b/a MD Labs Inc. and its principal owners Denis Grizelj and Matthew Rutledge. MD Labs, a California corporation headquartered in Reno, operates a clinical laboratory specializing in urine drug testing.
The settlement, which is based on MD Labs’ financial circumstances over time, is guaranteed at a minimum of $11.6 million and could reach a maximum of $16 million. Of this amount, Nevada could receive over $335,000.
“This settlement is yet another example of how my office will not allow bad actors to game the Medicaid system for personal gain,” said AG Ford. “I’m proud of the work our Medicaid Fraud Control Unit put in on this settlement, and I hope this serves as an example to bad actors going forward.”
The settlement resolves allegations that from Jan. 1, 2015, through Dec. 31, 2019, MD Labs improperly billed, or caused to be billed, federal health care programs for unnecessary urine drug testing. This included both presumptive tests, a less expensive test that quickly provides qualitative results, and confirmatory tests, a more expensive test that is designed to confirm quantitatively the results of presumptive tests.
MD Labs performed both tests at or around the same time and then simultaneously reported the results to...
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