Issue: Volume XXV No. 14 - October 1, 2018

Two Federal Court Decisions Are Bad News for Labs

Every pathologist and clinical lab administrator should pay attention to two federal court decisions made recently in two different legal cases. One decision is bad news for the entire clinical lab industry. The other is bad news for lab companies that push compliance with federal anti-kickback laws. The most important court decision came in the …

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Court Dismisses ACLA Claims in PAMA Case

CEO SUMMARY: While acknowledging that the American Clinical Laboratory Association raises important questions in its case against the federal Department of Health and Human Services, a district court judge ruled that the court cannot resolve the dispute and dismissed the ACLA’s claims for lack of “subject matter jurisdiction.” While not dismissing it outright, the judge …

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ACLA Lawyer Says Judge’s PAMA Ruling Is Narrow

CEO SUMMARY: Many lab professionals were disappointed at the news that a federal judge dismissed the American Clinical Laboratory Association’s arguments in its lawsuit against the federal Department of Health and Human Services (HHS). In an interview, the ACLA’s lead lawyer on the case discussed the key issues and explained ACLA’s claims about how HHS …

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Judge Rules ‘Pull-Through’ Is Illegal Inducement

CEO SUMMARY: In a ruling issued Sept. 12, a U.S. District Court judge decided that two common clinical laboratory business practices are illegal inducements that can lead to charges of ling false claims. The practices occur when labs pay physicians to package and mail patients’ specimens and when labs waive copays and deductibles for patients. …

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Peeking at Whistleblower Claims: How Labs Induce Physicians

IN RECENT DECADES, probably no sector of the U.S. healthcare system has seen the level of fraud and abuse that seems to pervade the clinical laboratory industry. The common perception is that illegal inducements between lab companies and referring physicians are rampant and federal prosecutors have failed to bring enough violators to justice to effectively …

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Defunct, Oft-Troubled Calloway Labs Hit with $1.4M Federal Judgement

HOW OFTEN IS A DEFUNCT LAB COMPANY IN THE NEWS? That was the odd development last week when it was announced that a U.S. District Court had entered a $1.4 million civil judgement against Calloway Laboratories, Inc., a toxicology lab company formerly based in Woburn, Mass., for business practices during the period May 2014 through …

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Pathology Errors a Factor in 3 Deaths at VA Hospital

CEO SUMMARY: Outside pathologists are reviewing the pathology reports of almost 20,000 patients of an Arkansas Veterans Administration hospital following termination of a Chief of Pathology who was believed to have handled cases while impaired. Currently, the review identified 256 cases where the pathology report missed the diagnoses and the potential for severe consequences existed. …

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October 1, 2018 Intelligence: Late Breaking Lab News

That’s all the insider intelligence for this report. Look for the next briefing on Monday, October 22, 2018. Have you caught the latest e-briefings from DARK Daily? If so, then you’d know about … …a recent study that discovered “low-value” medical lab tests and other overused medical procedures led to $282 million in “wasted” healthcare spending in …

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