This is a synopsis of three in-depth articles in the Aug. 12, 2019 issue of THE DARK REPORT (TDR). The full articles are available to members of The Dark Intelligence Group.
CEO SUMMARY: In 2017, an auditor for CMS alleged that True Health Diagnostics filed fraudulent claims and the federal Medicare program cut all payments to
Tag: laboratory companies
After Two-Year Battle with CMS, True Health on Verge of Collapse
By Robert Michel, from the Volume XXVI No. 11 – August 12, 2019 issue
CEO SUMMARY: In 2017, an auditor for CMS alleged that True Health filed fraudulent claims and the federal Medicare program cut all payments to the lab company and one month later reduced the cut to 35% of the billed amount. Two months ago, CMS ended all payments again. These facts became public on July 2
Labs Should Heed Lessons from Huge Data Breach
By Joseph Burns, from the Volume XXVI No. 9 – July 1, 2019 issue
CEO SUMMARY: Following news last month about the biggest breach of personal health information in the clinical lab industry, lawyers representing some of the affected patients filed at least 12 class action lawsuits. Federal officials and attorneys general in multiple states also launched investigations. The breach occurred when hackers gained access to the data systems
Pathology Firm Pays $63M to Settle Qui Tam Case
By Joseph Burns, from the Volume XXVI No. 3 – February 25, 2019 issue
CEO SUMMARY: Inform Diagnostics, formerly Miraca Life Sciences, settled the federal qui tam case while denying wrongdoing. The $63.5 million settlement will by paid by the former owner, Miraca Holdings, a Japanese company. The federal Department of Justice alleged that the company—then known as Miraca Life Sciences—violated the False Claims Act by engaging in what
Northwell Health Builds Two Big Lab Facilities
By Joseph Burns, from the Volume XXVI No. 3 – February 25, 2019 issue
CEO SUMMARY: At Northwell Health, the clinical laboratory team has been busy building and opening two new, large laboratory facilities. First to open was the lab in Little Neck, Queens, a shared lab with NYC Health and Hospitals. This lab will handle 36 million tests annually. The second lab to open is Northwell’s new core
Respected Lab Exec Found Dead in Triple Homicide
By Joseph Burns, from the Volume XXVI No. 3 – February 25, 2019 issue
CEO SUMMARY: Police and the district attorney have released few details about the murders of well-known clinical laboratory executive Richard Nicholson, his wife, and a family friend. The crimes were committed in Nicholson’s home in Newport Beach, Calif., and 27-year old Camden Nicholson, the family’s youngest son, was arrested as the prime suspect in this
Three Labs Make Big Bets to Build Major New Facilities
By Joseph Burns, from the Volume XXVI No. 2 – February 4, 2019 issue
EVEN AS SOME CLINICAL LABORATORY COMPANIES are closing or selling following the deep cuts in what Medicare pays for lab tests, three major lab organizations are building new, super-sized laboratory facilities.
Those three companies are ARUP Laboratories, DaVita Labs, and Quest Diagnostics Inc.
In September, DaVita Labs, a division of DaVita Kidney Care, opened a 150,000 square-foot
Attorney Explains 70/30 Rule, Pass-Through Bill Arrangements
By Joseph Burns, from the Volume XXV No. 10 – July 9, 2018 issue
HOW THE LAB OUTREACH BUSINESSES of rural hospitals originate lab specimens and bill for lab tests is getting increased scrutiny. The reason for this rise in interest is that a growing number of rural hospitals are generating almost as much revenue from laboratory outreach testing as they get from all other inpatient services.
Most rural hospitals
Big Insurers Seek Value-Based Deals with LabCorp, Quest
By Joseph Burns, from the Volume XXV No. 8 – May 29, 2018 issue
IT’S THE END OF AN ERA for the strategy of being the exclusive national lab provider for a major health insurer. Last week, the two largest clinical laboratory companies announced that the 10-year-old exclusive lab testing deals each had with a different big health insurer had crumbled.
In 2007, Laboratory Corporation of America locked up an
Legal Briefs Explain Problems with PAMA Implementation
By Joseph Burns, from the Volume XXV No. 6 – April 16, 2018 issue
CEO SUMMARY: Several developments have moved the case forward since December when the American Clinical Laboratory Association filed suit in federal court against the Department of Health and Human Services. Inrecent weeks, ACLA filed for summary judgment; HHS responded with its own request for summary judgment; and most recently ACLA filed its rebuttal to the