Federal healthcare fraud enforcement remains a priority as NeoGenomics Laboratories agrees to pay nearly $9.8 million over compensation arrangements tied to laboratory test referrals. The settlement also reflects credit from the U.S. government for the Florida company’s self-disclosure, cooperation and remedial actions during the investigation.

Highlights

• NeoGenomics Laboratories agreed to pay $9,813,260 to resolve U.S. Department of Justice allegations of violating the False Claims Act via below-market consulting and referral-based payments.
• The alleged misconduct involved offering consulting services to 28 healthcare providers below fair market value to induce laboratory test referrals and compensating independent consultants based on referral volume.
• NeoGenomics self-disclosed the conduct, terminated implicated agreements and employees, and received cooperation credit, with the settlement resolving allegations without determining liability.

Settlement terms and alleged referral practices

As reported by U.S. Department of Justice, NeoGenomics Laboratories Inc. has agreed to pay $9,813,260 to resolve allegations that it violated the False Claims Act through below fair market value consulting services for certain healthcare providers and referral-based compensation for independent consultants.

The U.S. alleges the conduct occurred through NeoGenomics’ Laboratory Clinical Initiative program, under which the company provided consulting services to 28 healthcare providers...

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