Virginia lab to pay $758K to settle physician kickback allegations 

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Next Bio-Research Services, doing business as Next Molecular Analytics, has agreed to pay at least $758,000 to settle allegations it paid illegal kickbacks to physicians and marketers, according to a Dec. 4 Department of Justice news release.

What happened?

  • The Chester, Va.-based laboratory allegedly disguised payments as consulting or medical director fees to induce physicians in Texas and Arkansas to refer testing services. 
  • It also allegedly paid independent contractor marketers commissions based on the volume and value of referrals, then billed Medicare, Medicaid and TriCAre for the tests despite knowing of the kickbacks.
  • The settlement resolves allegations brought under the False Claims Act by whistleblowers Sunil Wadhwa and Ken Newton. The relators will receive $113,700 from the settlement.

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