Issue: Volume XIII No. 10 - July 24, 2006

Lab Whistleblowers Are an Ever-Present Threat

EVERY PATHOLOGIST, LAB MANAGER, AND INDUSTRY EXECUTIVE has a justified fear of whistleblowers in their laboratory or company. Whistleblowers can surface at the most unexpected moment and with the most devastating consequences. As you will read in this issue of THE DARK REPORT, criminal actions against ex-employees of both UroCor, Inc. and Impath, Inc. were …

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Three Ex-UroCor Execs Acquitted in Jury Trial

CEO SUMMARY: On June 30, 2006,three former executives of UroCor,Inc.,accused by the U.S. Attorney of anti-kickback and securities violations, stood and heard the jury verdict in their case. “Not guilty on all counts,” stated the jury foreman. Thus ended the effort to convict former executives of a public lab company of violating Medicare anti-kickback laws …

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Six Ex-IMPATH Officials Receive Their Sentences

CEO SUMMARY: Justice has been meted out to six individuals accused of criminal fraud in the Impath,Inc. case. During June, sentences were pronounced for former President and COO Richard P. Adelson and several other defendants. Adelson will serve 42 months in prison, pay a $1.2 million fine, and was directed to pay restitution totaling $50 …

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Defense Attorneys Discuss Details Of UroCor Jury Trial

CEO SUMMARY: This was the first criminal case involving anti-kickback violations brought against executives of a public laboratory company. Federal prosecutors charged the defendants with offering inducements to referring physicians in several ways. Defense counsel rebutted the prosecution’s case, using several arguments that many laboratory compliance experts would consider both novel and unlikely. This story …

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“In-Office Pathology Mini-Labs” Offered by Physician GPOs

EARLIER THIS MONTH, two large physician GPOs (group purchasing organizations) announced that they had signed national agreements with a company that would “provide in-office pathology laboratories to their gastroenterology, urology, and dermatology member physicians.” The pathology company is the Twincrest Group of Cleveland, Ohio. The GPOs are International Gastroenterology Network (IGN) and International Urology Network …

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July 24, 2006 “Intelligence: Late Breaking Lab News”

There’s a new crop of Web- based, direct-to-consumer laboratory companies. In recent months, Joplin-Missouri-based MyMedLab, Inc., (www. mymedlab.com) and Med-LabUSA, LLC of Tampa Florida ( www.medlabusa.com) have begun to seek publicity. Both companies offer patients a way to order laboratory tests directly via the Internet and both companies contract with other laboratories to perform the …

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