Quest Diagnostics pays $13M for physician kickback scheme

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Secaucus, N.J.-based Quest Diagnostics has paid more than $13 million to resolve allegations that it gave physicians and other healthcare decision-makers free New York Giants tickets and events to win their lab referrals, according to a Nov. 6 news release from the U.S. Attorney’s Office for the District of New Jersey.

From July 2013 through August 2022, Quest allegedly used its naming rights and sponsorship deal with the Giants to offer providers and executives free suite seats at MetLife Stadium with food and alcohol, plus VIP training camp visits, Draft Chalk Talks and Family Combine Days. The government alleged that sales representatives tied their sales goals to Giants invitations and that Quest measured the return on investment of the events for the 2013-16 seasons. The alleged kickbacks led to claims submitted to Medicare and to the New York and New Jersey Medicaid programs.

Quest paid $13,014,576 plus interest and signed a five-year corporate integrity agreement with HHS’ Office of Inspector General. The case was brought by whistleblowers Gerard Abate, MD; Lori Anderson; and Douglas S. Rabin, MD. They will share about $2.47 million of the recovery.

The claims are allegations only, and there has been no determination of liability.

Quest provided the following statement to Becker’s: “We wholeheartedly deny these allegations and the settlement contains no determination of liability. Consistent with Quest’s commitment to acting with integrity and in compliance with all laws and regulations that govern our business, the Giants events were conducted transparently, and our Compliance Department took steps to monitor and oversee them. Although we deny any allegations of wrongdoing or violation of the law, we agreed to a settlement with the government more than a year ago to put the matter behind us. Since last year, we have also shared information about this settlement, which includes a Corporate Integrity Agreement, with the public through our regulatory filings. In many respects, the CIA mirrors our existing rigorous compliance program, and we have been complying with its requirements.”

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