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New Developments in $1 Billion Lab Fraud Case

CEO SUMMARY: Court documents filed last month in the federal qui tam case against Health Diagnostic Laboratory, Singulex, Berkeley Heart Lab, BlueWave Healthcare Consultants, and several lab executives allege that the defendants used illegal inducements and kickbacks to file false c…

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Winning Bidder for HDL Connected to BlueWave

CEO SUMMARY: Events within the bankruptcy proceedings of Health Diagnostic Laboratory could be interpreted as setting the stage for the emergence of a laboratory company operated by executives-and marketed by a sales consultant-known to have had leadership roles in other lab companies accus…

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Isn’t It Time for More Criminal Prosecutions of Lawbreakers?

WILL FEDERAL PROSECUTORS BE PLAYING ANOTHER ROUND of the game “whack a mole” with some of the same principals and clients of Health Diagnostic Laboratory and Bluewave Healthcare Consultants? These are individuals who figured prominently in the ongoing federal whistleblower cases allegin…

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Feds Show How Labs Took $500 Million from Medicare

CEO SUMMARY: In this second phase of the whistleblower case against three cardiology testing labs and a sales consulting company, federal prosecutors are requesting a jury trial against the individuals named in the court documents filed August 7. Federal investigators alleged t…

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New Developments in $1 Billion Laboratory Fraud Case

IT’S THE $1 BILLION LABORATORY FRAUD that no one realized had grown so big. In this special issue of THE DARK REPORT, you’ll read how the next chapter of the federal whistleblower lawsuit against three specialty cardiology labs and certain individuals has pulled the curtain open on what …

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LabCorp Loses A Hospital Lab Joint Venture

ONE OF THE NATION’S LONGEST-RUNNING LAB OUTREACH JOINT VENTURES involving a public lab company and a major hospital came to a quiet end on June 30. That’s the day when United/Dynacare Laboratories, LLC, ceased to exist. This was a joint venture in Milwaukee that was established …

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Lab Briefs

QUEST SETTLES TEST-PRICING CASE WITH FOUR CALIFORNIA LABS LAST WEEK, A CALIFORNIA JUDGE APPROVED the settlement of a lawsuit that claimed Quest Diagnostics Incorporated had violated a state law that forbids selling services (in this case, lab testing) below cost. In a deci…

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Investment Bank Bullish On Clinical Labs, Pathology

CEO SUMMARY: For clinical laboratories and anatomic pathology groups willing to adapt to the evolving needs of the American healthcare system, there are many positive opportunities. That’s the view of a Wall Street investment bank that just published a report on the lab testing…

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OIG Says It Is Ready to Target Physicians in Kickback Cases

PHYSICIANS WHO PARTICIPATE IN schemes that violate anti-kickback and fraud statutes will be at greater risk of prosecution by federal healthcare officials. This development comes following the June 9 release by the OIG of “Fraud Alert: Physician Compensation Arrangements May Result in Significant Li…

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Some Labs Report Faster Pay for Molecular, Genetic Tests

DURING RECENT MONTHS, some labs are reporting improvement in how their claims for certain molecular and genetic tests are being reimbursed. This is progress from the financial crises experienced during 2013 for many labs performing molecular and genetic tests….

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