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Physician Law Blog

We provide insights and analysis for physicians, nurses, chiropractors, dentists, physical therapists and other health professionals on issues impacting their practices.

Physician Law Blog
April 8, 2015

Another DOJ False Claims Act Settlement - Two Cardiovascular Disease Testing Labs to Pay $48.5M to Resolve Allegations of Kickbacks and Unnecessary Testing

The OIG has made it clear that laboratory payments to referring physicians are suspect as another False Claims Act (FCA) settlement was announced. The $48.5M settlement involves Health Diagnostics Laboratory, Inc. (HDL) and Singulex Inc. and resolves allegations they violated the FCA by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing. Allegedly HDL and Singulex induced physicians to refer patients to them for blood tests by paying them processing and handling fees between $10 and $17 per referral and routinely waiving patient co-pays and deductibles.