CASE ALLEGING LABCORP OVERCHARGED MEDI-CAL & GAVE DISCOUNTS FOR PULL-THROUGH

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CA DOJ

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The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse, is seeking information about allegations in a civil case that it is pursuing against Laboratory Corporation of America (LabCorp). It is also seeking information about similar practices at other labs doing business in California.

The complaint against LabCorp alleges, among other things, that since 1995 LabCorp has claimed tens of millions of dollars in excessive or improper charges for medical tests performed for Medi-Cal patients by

1. giving discounted prices as kickbacks to doctors, hospitals, and clinics in order to obtain referrals of tests for which Medi-Cal was charged higher prices, and

2. charging Medi-Cal more than it charged other purchasers of comparable tests under comparable circumstances.

If you have information about these allegations, and are not a current employee of LabCorp, or know of similar practices at another lab by which you are not currently employed, please call 916-274-2951 or send an email to labpricing@doj.ca.gov

Additional Information can be found at:
Press release: http://oag.ca.gov/news/press_release?id=1705
Complaint against LabCorp: http://ag.ca.gov/bmfea/pdfs/complaint_ca_labcorp.pdf
 






CA DOJ said:
The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse, is seeking information about allegations in a civil case that it is pursuing against Laboratory Corporation of America (LabCorp). It is also seeking information about similar practices at other labs doing business in California.

The complaint against LabCorp alleges, among other things, that since 1995 LabCorp has claimed tens of millions of dollars in excessive or improper charges for medical tests performed for Medi-Cal patients by

1. giving discounted prices as kickbacks to doctors, hospitals, and clinics in order to obtain referrals of tests for which Medi-Cal was charged higher prices, and

2. charging Medi-Cal more than it charged other purchasers of comparable tests under comparable circumstances.

If you have information about these allegations, and are not a current employee of LabCorp, or know of similar practices at another lab by which you are not currently employed, please call 916-274-2951 or send an email to labpricing@doj.ca.gov

Additional Information can be found at:
Press release: http://oag.ca.gov/news/press_release?id=1705
Complaint against LabCorp: http://ag.ca.gov/bmfea/pdfs/complaint_ca_labcorp.pdf
Click to expand...
So what is the problem? You get the business how you can. Everybody does it.
 
























The California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse, is seeking information about allegations in a civil case that it is pursuing against Laboratory Corporation of America (LabCorp). It is also seeking information about similar practices at other labs doing business in California.

The complaint against LabCorp alleges, among other things, that since 1995 LabCorp has claimed tens of millions of dollars in excessive or improper charges for medical tests performed for Medi-Cal patients by

1. giving discounted prices as kickbacks to doctors, hospitals, and clinics in order to obtain referrals of tests for which Medi-Cal was charged higher prices, and

2. charging Medi-Cal more than it charged other purchasers of comparable tests under comparable circumstances.

If you have information about these allegations, and are not a current employee of LabCorp, or know of similar practices at another lab by which you are not currently employed, please call 916-274-2951 or send an email to labpricing@doj.ca.gov

Additional Information can be found at:
Press release: http://oag.ca.gov/news/press_release?id=1705
Complaint against LabCorp: http://ag.ca.gov/bmfea/pdfs/complaint_ca_labcorp.pdf
 






This lawsuit was also brought against Westcliff, the lab that LabCorp bought. As part of the bankruptcy, Westcliff had to settle the lawsuit with the state by giving them about $5 million from the proceeds of LabCorp's purchase. LabCorp probably should just settle in the same way.

Interestingly, in the FTC Case for Westcliff, Hunter Labs, the whistleblower who informed the CA attorney general Jerry Brown at the time about the medical fraud, filed a motion to supress a subpoena brought on by LabCorp. Apparently, LabCorp is requesting personal financial and strategic information for their case against FTC from them, and Hunter Labs was claiming it is a revenge tactic for bringing on the mediCAL lawsuit. The judge disagreed and denied the motion by Hunter Labs. Serves them right.
 


















The State Atty General filed the lawsuits against Quest and LabCorp and others exactly two years ago.

With Quest now finally offering their settlement of 241M, and other labs finalizing their settlements, when will LabCorp finalize their settlement.

Once you settle your issue, don't you have to change your pricing practices? It would seem that Quest will change their pricing practices and make all pricing at or above what they bill to MediCal, when LabCorp does it.

Come on LabCorp we are all waiting on you.
 






A level playing field would result if Labcorp and Quest changed their pricing policies above Medi-cal rates. Why don't they want to play by the rules like other labs in the industry.
 










































Quest, LCA, and other California labs are still pricing below Medi-Cal reimbursement rates. Word is...these labs believe they have a loophole. They believe if they bill the client $3.00 for a CBC and they bill Medi-Cal $3.00 for a CBC when ordered by the same client - it's OK - even if the doctor next door has zero client billing and the lab bills Medi-Cal $25.00 for a CBC. Come on people...get with the program. This loophole is bad news...it doesn't fly with regulators. Get ready for another round of settlements?
 


















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