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.
