Anderson, S.C.-based Clinical Laboratory, formerly known as Labtech Diagnostics, agreed to pay at least $6.8 million to resolve allegations it paid illegal kickbacks to physicians, according to a Jan. 8 news release from the Justice Department.
What happened?
- From August 2018 to November 2021, the company allegedly disguised kickbacks to physicians as office space rental, phlebotomy and toxicology payments to induce referrals for lab tests. Additional allegations include inflated payments for used lab equipment between September and December 2016 and provision of free supplies to a North Carolina pain practice between March 2018 and November 2021.
- The laboratory and its founder and CEO. The civil settlement brings total False Claims Act recoveries related to Labtech to more than $11.5 million, including prior settlements with nine physicians.
- Labtech also agreed to plead guilty to five counts of offering and paying healthcare kickbacks and to pay $103,551.90 in restitution in the criminal matter.
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