Headlines that Matter for Companies and Executives in Regulated Industries
A laboratory company based in Texas, Genotox Laboratories Ltd., recently reached an agreement with the federal government to resolve False Claims Act and Anti-Kickback Statute violations, stemming from allegations related to unnecessary drug testing claims.
The federal government alleged that, between 2014 and 2020, Genotox made illegal payments to sales contractors and marketing companies in exchange for those entities facilitating or recommending Genotox to conduct laboratory work. Moreover, Genotox submitted false reimbursement requests to the Medicare and TRICARE programs for claims between 2014 and 2022 related to unreasonable testing and unnecessary standing orders for drug testing. Genotox also admitted that it typically billed providers at the highest amount possible for these tests.
In addition to the nearly $6 million monetary penalty, Genotox further agreed to certain other special conditions, such as maintaining a compliance program, creating and implementing a risk management program, as well as engaging an independent monitor to oversee its Medicare and Medicaid claims submissions.
Read the US Department of Justice’s (DOJ) press release here.
California Man Admits to Defrauding Medicare
On April 3, 2023, a Glendale, California, resident entered a guilty plea to charges that he conspired to defraud Medicare in the amount of over $3.1 million. Karen Sarkisyan, a.k.a. Kevin Sarkisyan,...
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