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Congress’ New SGR Law Has Mixed News for Labs

CEO SUMMARY: Once again, the lab industry faces a mixed bag following passage of a new law by Congress last week. Besides the one-year fix for the SGR, H.R. 4302 also has language that may defer adjustments to Medicare Part B lab test fees until 2017 and creates a new procedure for Medica…

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Lawyer Advises on Risk Of Prostate Biopsy Audits

CEO SUMMARY: For labs currently processing prostate biopsy cases with five or more cores and for those pathologists interpreting those cases, there is a lack of clarity about new Medicare policies. As one example, risk of an audit is significant because of recent guidance issued by one Me…

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‘Pull Through’ Is Key Issue in Lab Whistleblower Suit

CEO SUMMARY: Now comes a whistleblower lawsuit in federal court with the claim that, in the 2007 contract between UnitedHealth Group and Laboratory Corporation of America, LabCorp’s discounted lab test prices were a kickback that violated Medicare law. LabCorp has denied the al…

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Former Lab CEO Explains Why He Filed Lawsuit

CEO SUMMARY: It may be the first time that a former public laboratory CEO has turned whistleblower. Andrew Baker, formerly Chairman and CEO of Unilab Corporation in the 1990s, filed a qui tam case in federal court last year that centers on the practice of lab companies offering private he…

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Teamsters, UCFW Sue NID, Quest In Racketeering Case

CEO SUMMARY: For the second time in recent years, Quest Diagnostics Incorporated and Nichols Institute Diagnostics (NID) face a lawsuit alleging problems with a number of diagnostic test kits that were manufactured and sold by NID going back to 2000. The plaintiffs are two unions…

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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 scen…

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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 Qu…

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$241 Million May Settle Quest Medi-Cal Claims

CEO SUMMARY: There’s movement in the negotiations between California state officials and Quest Diagnostics Incorporated over allegations that discounted lab test prices violated state law. In January, Quest disclosed that it had an “understanding” with California regulators…

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Did Qui Tam Suit Trigger Medi-Cal Price Concerns?

CEO SUMMARY: It is easy to track backwards to understand why the California Department of Healthcare Services (DHCS) began aggressive enforcement of its interpretation of statute 51501(a) against a number of labs this summer. DHCS officials were given a full education and a roadm…

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Calif. Officials Back Off From Suspending Labs

CEO SUMMARY: Early in the summer, California’s Department of Health Care Services (DHCS) delivered letters to between 10 and 30 laboratory companies notifying them that, effective immediately, it was withholding their Medi-Cal payments and was suspending each lab’s Medi-Cal l…

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