On July 14, 2022, the United States Department of Justice (DOJ) announced a $9,853,958 settlement with BioReference Health LLC (f/k/a BioReference Laboratories, Inc.) and OPKO Health (parent company of BioReference), resolving allegations of False Claims Act violations. According to the DOJ, BioReference and OPKO paid above-market rents to physician landlords for office space, in an attempt to induce referrals from those physicians to BioReference.

The case was initially brought through the qui tam provisions of the False Claims Act by a former employee of BioReference and OPKO. The relator will receive roughly $1.675 million as their share of the total recovery. In addition to the $9.85 million, the companies will pay the Commonwealth of Massachusetts $141,041 and the State of Connecticut $5,001 to resolve alleged violations of their state False Claims Acts.

According to the DOJ, from January 1, 2013 through March 31, 2021, BioReference made lease payments to physicians and physician groups for office space rentals. The problem is the lease payments exceeded fair market value, which is a violation of both the Physician Self-Referral Law and the Anti-Kickback Statute.

Through the settlement, BioReference admitted that it did rent the office space from the physician practices for “Patient Service Centers,” where patients were able to have their blood drawn. To calculate the rent payment under certain payment service center lease arrangements, BioReference would...

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