The Justice Department alleged that Guardant submitted claims and received payments from Medicare for laboratory services that had been referred in violation of Stark Law. Guardant also allegedly knowingly submitted or caused the submission of false claims for payments.
In April 2021, a physician in Austin, Texas, contacted Guardant’s human resources department to recommend a family friend for an account manager position, according to a July 18 news release from the Justice Department. The family friend was hired.
In October 2021, the physician sought a position for his stepdaughter, who was considered, but rejected, for a position in the company’s screening division.
In February 2022, two Guardant employees arranged for the family friend to be promoted, opening a role in the oncology division for the stepdaughter. The two employees knew about the relationship and knew the stepdaughter was not qualified for the role.
According to the report, the “physician then ordered significantly more Guardant tests per quarter after both hirings.”
Guardant, who voluntarily disclosed the conduct to the HHS, will also pay $31,082 in an administrative settlement with the Defense Health Agency.
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