COLUMBIA, S.C. (FOX Carolina) - The U.S. Department of Justice says Laboratory Corporation of America Holdings will pay the U.S. $19 million to settle allegations that it violated the False Claims Act. Labcorp is one of the largest providers for clinical laboratory services.
The USDOJ says Labcorp allegedly submitted false claims to Medicare as a result of Labcorp’s provision of phlebotomy services whose health care providers were ordering laboratory testing from Labcorp, Health Diagnostic Laboratory, Inc. (HDL), and/or Singulex, Inc. (Singulex).
Relators allege Labcorp knew HDL and/or Singulex were paying health care providers process and handling fees as persuasion to refer patients to their laboratories.
HDL and Singulex previously settled their civil liability with the U.S. government for a combined $48.5 million in 2015.
“Health care decisions should be based on what is in the best interest of the patient, and not on financial incentives and related schemes,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina.
The USDOJ says the claims resolved by the settlement are allegations only, and there has been no determination of liability.
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