A laboratory and a diagnostics-maker, both based in Massachusetts, are allegedly involved in separate federal and state-level kickback schemes, according to charges brought by the U.S. Justice Department and the Massachusetts Attorney General's Office.
Boston Heart Diagnostics Corporation, a Framingham-based subsidiary of a Luxembourg-headquartered laboratory services company called Eurofins Inc., was implicated last month when federal prosecutors brought charges against three of its former employees. According to the complaint, former CEO Susan Hertzberg, former VP of sales Matthew Theiler and former area sales manager and recruiter Laura Howard allegedly conspired with small Texas hospitals to pay doctors to refer patients to hospitals for lab tests, some of which were performed by Boston Heart Diagnostics.
Prosecutors allege that these hospitals paid some of their laboratory profits to recruiters, who then kicked back those funds to the referring doctors. They allegedly set up management service organizations, like the one Howard runs, to pay those doctors, masking them as investment returns.
Per the complaint, Boston Heart Diagnostics executives and sales employees used the kickbacks to doctors to increase referrals and, consequently, their bonuses and commissions. One of the Texas hospitals purportedly billed the lab tests improperly — as hospital outpatient services — in order to increase reimbursement.
Many of the tests the patients underwent were "not reasonable...
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