Labcorp to settle false claims allegations with $19 million payment to U.S.
Laboratory Corporation of America Holdings (Labcorp) has agreed to pay $19 million after being accused of violating the False Claims Act.
COLUMBIA, S.C. (WOLO)— Laboratory Corporation of America Holdings (Labcorp) has agreed to pay $19 million after being accused of violating the False Claims Act.
The payment comes after the clinical laboratory services company allegedly submitted false claims to Medicare for patients who were ordered laboratory testing from Labcorp, Health Diagnostic Laboratory, Inc. (HDL), and/or Singulex, Inc. (Singulex).
At this time Labcorp allegedly knew HDL and/or Singulex were paying health care providers process and handling fees as an incentive to refer patients to their laboratories.
HDL and Singulex previously settled with the government for a combined $48.5 million.
The settlement resolves a lawsuit originally brought by Scarlett Lutz and Kayla Webster under the qui tam or whistleblower provisions of the False Claims Act. They will receive approximately $5.6 million of the federal settlement amount.
In press release statement, U.S. Attorney Adair F. Boroughs for the District of South Carolina says, “Health care decisions should be based on what is in the best interest of the patient, and not on financial incentives and related schemes. The efforts of relators like Scarlett Lutz and Kayla Webster are essential to protecting the integrity of our Medicare system, and we thank them for bringing these allegations forward.”