Agendia Inc., Knoxville Comprehensive Breast Center, and Knoxville Dermatopathology Lab settle lawsuit over false claims to government healthcare programs.
KNOXVILLE, Tenn. — A global molecular diagnostics company, a Knoxville breast cancer center and a Knoxville dermatopathology lab agreed to settle a lawsuit claiming they submitted "deceptive" claims to government healthcare benefit programs, according to the United States Attorney's Office of the Eastern District of Tennessee.
Agendia Inc., Knoxville Comprehensive Breast Center and Knoxville Dermatopathology Laboratory all agreed to settlements over allegations they violated the false claims act. Agendia will pay at least $3.25 million, Knoxville Comprehensive Breast Center will pay $322,500 and Knoxville Dermatopathology will pay $207,500.
According to court records, between August 1, 2019 and September 30, 2022, Agendia submitted false claims for MammaPrint testing to Medicare, Medicaid and other government payors. MammaPrint is a genomic test used in early-stage breast cancer to assess the risk of recurrence and if a patient would benefit from chemotherapy.
The U.S. Attorney's Office believed these claims were "not reasonable or medically necessary" through standing or automatic orders. The U.S. Attorney's Office also alleged Agendia would award providers who ordered the tests with "extravagant dinners, excessive or improper honoraria, gift cards, and payments per referral or monthly flat rate payment arrangements."
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