HDL and Singulex, two US diagnostics centers slammed with $48.5 million for useless lab testsDaniel McCarthy (Author) Published Date : Apr 11, 2015 16:58 IST
Health Diagnostics Laboratory Inc. (HDL) and Singulex Inc., two US cardiovascular disease testing laboratories have been slammed a joint sum of $48.5 million for conducting unnecessary tests for patients, and then offer kickbacks to hospitals referring those patients to them.
The US Department of Justice revealed on Thursday that HDL will pay $47 million and Singulex will pay $1.5 million to settle claims arising from the lawsuit filed by four patients affected by the offence. But neither of the party admitted any liability in the allegations.
Under the False Claims Act, the labs were accused of paying physicians in exchange for referring patients to them; and they also billed Medicare and other healthcare programs for conducting unnecessary medical tests. Each doctor was paid between $10-$17 for each patient that was referred to them for various medical tests.
Under this current agreement, both US companies agreed to sign separate agreements to ensure such unethical practices do not happen again, and this will be with the Department of Health and Human Services' Office of Inspector General.
Each of the whistleblowers that filed the lawsuit will obtain a share of the proceeds recovered from the two diagnostic companies, but the Department of Justice said the amount is not yet determined.
Over $23.9 billion has been recovered by the Department of Justice through False Claims Act cases since 2009, and part of this was about $15.2 billion raised from cases of fraud against federal healthcare programs.
HDL and Singulex, two US diagnostics centers slammed with $48.5 million for useless lab tests