The United States Department of Justice (DOJ) announced that Laboratory Corporation of America (LabCorp) will pay $2.1 million to resolve allegations that the company violated the federal False Claims Act. According to the DOJ, LabCorp overbilled the United States Department of Defense (DOD) for genetic tests performed by GeneDx, LLC, a third party reference laboratory used by LabCorp to perform genetic tests for military members.
The claim was initially brought under the qui tam provisions of the False Claims Act by a former LabCorp employee, who alleged that LabCorp and the DOD entered into a contract where LabCorp would perform lab testing at all DOD Military Treatment Facilities throughout the world. However, certain specialized tests – including genetic tests involving fetuses and parents – were performed by GeneDx as a reference lab for LabCorp. GeneDx would invoice LabCorp for the genetic tests and LabCorp would invoice the DOD.
According to the settlement agreement, from December 1, 2013, through June 30, 2021, LabCorp allegedly double and/or triple billed the DOD for genetic tests performed by GeneDx and overcharged the DOD for genetic tests performed by GeneDx. LabCorp also allegedly inappropriately billed DOD for tests performed by GeneDx when LabCorp was later unable to locate evidence of one of the following: (1) a DOD requisition form; (2) a GeneDx test result; and/or (3) a corresponding Dx invoice. There was allegedly $210,959 in overcharges on 38 tests,...
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