A Laboratory Corporation of America Holdings (LabCorp) 642E centrifuge sits in a Community Clinic Inc. health center in Silver Spring, Maryland.
Andrew Harrer | Bloomberg | Getty Images
Laboratory Corporation of America will pay the U.S. $2.1 million to settle allegations that it overbilled the Department of Defense for genetic tests that involved children and fetuses, the Justice Department announced Monday.
A former LabCorp employee turned whistleblower, Donna Hecker-Gross, sued the diagnostic testing company in 2018 on behalf of the federal government under the False Claims Act. The civil lawsuit was filed in the U.S. District Court for the District of Maryland.
Hecker-Gross will receive $357,000 as part of the settlement, according to the Justice Department.
Hecker-Gross’ allegations surrounded genetic tests performed under a contract LabCorp entered with the Defense Department in 2012. Under the contract, LabCorp provided laboratory testing to DOD military treatment facilities around the world, including tests it paid genetic testing company GeneDx to perform.
Hecker-Gross alleged that LabCorp overcharged and double or triple-billed DOD for genetic tests performed by GeneDx. There were $210,959 in overcharges on 38 tests, including $113,525.50 for 21 tests billed between March 2016 and January 2017 alone, the lawsuit alleged.
The lawsuit alleged that staff at Walter Reed National Military Medical Center in 2017 first questioned LabCorp about charges for a certain...
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