Issue: Volume XVIII No. 8 - June 13, 2011

What Future for Deeply-Discounted Lab Prices?

IN THE LABORATORY TESTING INDUSTRY, there is probably no single issue that causes more rancor than the regular use of deeply-discounted pricing of laboratory tests by a certain cohort of laboratory companies. This fault line in our industry is quite distinct. Those managers and pathologists in lab organizations that refuse to use low cost pricing …

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Will Medi-Cal Price Case Bring More Enforcement?

CEO SUMMARY: It was on May 19 that the California Attorney General and Quest Diagnostics Incorporated signed an agreement to settle allegations that Quest Diagnostics overcharged Medi-Cal, the state’s Medicaid program. It is expected that the California Attorney General will now move to resolve the whistleblower case against the remaining lab company defendants. Meanwhile, similar …

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Quest Diagnostics Settles Medi-Cal Qui Tam Case

CEO SUMMARY: On May 19, the California Attorney General announced a $241 million agreement with Quest Diagnostics Incorporated that represents the largest settlement in the history of California’s False Claims Act. At issue in this whistle- blower lawsuit were allegations that Quest Diagnostics, along with multiple other defendant lab companies, had overcharged Medi-Cal, which is …

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Understanding the Deal With Medi-Cal and Quest

CEO SUMMARY: It is now possible to see the specific language in the “Settlement Agreement and Release” document executed by the California State Attorney General and Quest Diagnostics Incorporated. For those clinical lab managers—and the attorneys who represent their laboratory companies—there is mixed news and guidance about 51501(a) from this agreement. That’s because, while assenting …

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Quest Diagnostics to File Regular Reports with DHCS

CEO SUMMARY: Pathologists, clinical lab executives, and lawyers in California are going to find some surprises when they study the “Settlement Agreement and Release” that was recently signed by the California Attorney General and Quest Diagnostics Incorporated. Quest Diagnostics has indeed agreed to pay $241 million to resolve the allegations in the whistleblower lawsuit. But …

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Medi-Cal Deal Raises Interesting Questions

CEO SUMMARY: From the perspective of the average citizen, it would appear that Quest Diagnostics scored two major “wins” over the California Attorney General in the negotiations as to how the whistleblower lawsuit was to be settled. Language in the settlement agreement would indicate that current lab sales and marketing practices involving deeply-discounted test prices …

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What Comes Next in Battle Over Discount Lab Prices?

CEO SUMMARY: Now that the settlement involving Quest Diagnostics Incorporated and the California Attorney General has been announced, attention turns to what comes next with the four remaining defendant lab companies in the whistle-blower lawsuit. There are several different scenarios and it may be that California regulators face tough challenges before they can succeed in …

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Dark Daily

June 13, 2011 “Intelligence: Late Breaking Lab News”

In coming weeks, Agendia, probably best known for its genetic breast cancer test, hopes to complete an initial public offering (IPO). Agendia is a company based in Amsterdam, The Netherlands with offices in Irvine, California. Its stock symbol will be “AGDX” and the shares will trade on the Euronext Amsterdam exchange. Plans are to raise …

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