Headlines that Matter for Companies and Executives in Regulated Industries
A New Jersey-based laboratory, RDx Bioscience Inc. (RDX), and its owner and CEO, Eric Leykin, agreed to pay $10,315,023 to the US government and an additional $2,934,977 to the State of New Jersey to resolve allegations that it paid illegal kickbacks to induce referrals for laboratory testing and then submitted false claims to Medicare and Medicaid.
According to the government’s press release, RDX and Leykin allegedly paid independent contract marketers to arrange and recommend that health care providers order RDX tests based on the volume and value of the referrals, as well as staff members of referring health care providers to induce the ordering of RDX laboratory testing. The government also alleged that RDX marketers paid health care providers purported management service organization payments and phony consulting medical director fees that were designed as further inducements for the providers to order even more unnecessary tests. The RDX marketers are further alleged to have paid principals of abuse recovery centers to induce referrals to RDX for laboratory testing.
Read the US Department of Justice’s (DOJ) press release here.
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