Calif Medicaid Deal

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Anonymous

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LabCorp settles lawsuit over Medicaid billing for $49.5M, will take Q2 charge
Laboratory Corporation of America Holdings has reached an agreement in principle to settle the previously disclosed lawsuit, California ex rel. Hunter Laboratories, LLC v. Quest Diagnostics Incorporated, et al., to avoid the uncertainty and costs associated with prolonged litigation. The settlement in principle provides that the company will pay $49.5M to resolve all claims brought against the company in the lawsuit. As a result of the settlement in principle, the company has recorded a Q2 pre-tax charge of $34.5M, net of a previously recorded reserve of $15.0M, $20.7M after tax. The original lawsuit was brought against the company and several other major laboratories operating in California and alleged that the defendants improperly billed California’s Medicaid program. The settlement is subject to the negotiation and execution of a Settlement Agreement and Release. :theflyonthewall.com
 






Now that LabCorp has settled, and with Quest settling last May, when will prices go up from these two National Labs?

Quest gave MediCal a 15% discount until end of next year because they wouldn't raise prices to customers in a quick manner. They chose to give up important profits from MediCal reimbursement because they couldn't or wouldn't raise prices to quickly.

I wonder if the MediCal settlement impacts the Cap Rates provided by Quest and LabCorp. Rates that are net effectively a third of MediCal reimbursement.
 






Is the post correct about LabCorp settling for $49.5 Million? I haven't seen any other announcements on this issue. I also haven't seen any Media or Investor announcements from LabCorp on this issue.
 


















Anonymous said:
And here it is straight from the SEC 8K: http://sec.gov/Archives/edgar/data/920148/000092014811000060/form8k.htm
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LabCorp is downright CORRUPT. It repeatedly pays fines, but it's belligerance in the marketplace is well-known to everyone. Good job, Hunter Labs, for calling them to task and getting paid for your good deeds! Shame on LabCorp-- why would anyone want to work for such a despicable, CORRUPT company-- and that's not my opinion, that's the opinion of the ATTORNEY GENERAL OF CA.
 






Anonymous said:
LabCorp is downright CORRUPT. It repeatedly pays fines, but it's belligerance in the marketplace is well-known to everyone. Good job, Hunter Labs, for calling them to task and getting paid for your good deeds! Shame on LabCorp-- why would anyone want to work for such a despicable, CORRUPT company-- and that's not my opinion, that's the opinion of the ATTORNEY GENERAL OF CA.
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Corrupt, you betcha. Fined repeatedly. Once a decade? Just like every other lab.
 






Anonymous said:
LabCorp is downright CORRUPT. It repeatedly pays fines, but it's belligerance in the marketplace is well-known to everyone. Good job, Hunter Labs, for calling them to task and getting paid for your good deeds! Shame on LabCorp-- why would anyone want to work for such a despicable, CORRUPT company-- and that's not my opinion, that's the opinion of the ATTORNEY GENERAL OF CA.
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Do you know any major labs in Calif that were NOT part of this suit?
 






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