A now-bankrupt skin cancer testing company has agreed to settle False Claims Act allegations of billing Medicare for unreliable skin cancer tests that had known quality control issues, the Justice Department said in an Aug. 36 news release.
DermTech, now liquidating as DTech Liquidating Inc. following a June 2024 Chapter 11 bankruptcy filing, allegedly billed Medicare for tests conducted after switching to an unvalidated positive control range for a key melanoma marker and for tests that did not contain enough patient RNA to produce accurate results, yet still generated and reported positive or negative results to patients.
When concerns were raised, DermTech neither retracted the results nor adequately refunded Medicare. The United States will receive an allowed unsecured claim of $5,038,011 in the bankruptcy proceeding. The case was initiated through a whistleblower complaint filed by a former DermTech employee.
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