In a significant development for healthcare fraud prevention, Precision Toxicology, LLC (doing business as Precision Diagnostics, Inc.) has agreed to pay $27 million to settle allegations of submitting false claims to Medicaid programs across the United States. This settlement, announced by Hawaii Attorney General Anne Lopez, involves the federal government, the District of Columbia, and 43 states, highlighting the widespread nature of the alleged fraud.
The Allegations Against Precision Toxicology
Precision Toxicology, a laboratory specializing in urine drug testing (UDT), faced serious accusations regarding its business practices from January 1, 2013, through December 31, 2022.
The company was alleged to have:
- Submitted false claims for medically unnecessary UDT
- Implemented blanket orders for UDT without proper physician determination
- Provided free point-of-care UDT cups to physicians in exchange for referrals (from January 1, 2013, through June 30, 2014)
These practices potentially violated the Anti-Kickback Statute and resulted in unnecessary costs to Medicaid programs nationwide.
The Settlement Details
The $27 million settlement resolves allegations brought forth in three separate whistleblower lawsuits under the qui tam provisions of federal and state False Claims Acts. These provisions allow private individuals to file lawsuits on behalf of the government and share in any recovery.
Key points of the settlement include:
- Hawaii will receive $101,416.16 in restitution
- The settlement covers claims submitted from January 1, 2013, through December 31, 2022
- 43 states, the District of Columbia, and the federal government are involved
The Role of Whistleblowers and State Agencies
This case underscores the crucial role of whistleblowers in uncovering healthcare fraud. The lawsuits were filed by private individuals under qui tam provisions, demonstrating the effectiveness of these legal mechanisms in combating fraud.
State agencies, including the National Association of Medicaid Fraud Control Units (NAMFCU) and various state Attorneys General offices, played a vital role in investigating and resolving these allegations
The Importance of Combating Medicare Fraud and the Role of Whistleblowers
Medicare fraud is a serious issue that costs taxpayers billions of dollars annually and compromises the integrity of essential healthcare programs. Whistleblowers play a crucial role in exposing such fraudulent activities, often at great personal risk. Their actions not only help recover misused funds but also deter future misconduct, ultimately protecting patients and preserving the quality of healthcare services.
The False Claims Act, with its qui tam provisions, provides a powerful tool for individuals with knowledge of fraud to come forward and assist the government in holding wrongdoers accountable. Cases like the Precision Toxicology settlement demonstrate the significant impact whistleblowers can have in safeguarding public health programs and taxpayer dollars.
Call to Action: Report Healthcare Fraud
If you have information about similar fraudulent activities in the healthcare sector, it's crucial to speak up. The Whistleblower Advocates offer free, confidential consultations to individuals who wish to report fraud against government programs. Our experienced attorneys can guide you through the process of filing a qui tam lawsuit and protect your rights as a whistleblower.
Don't let fraud go unreported. Contact The Whistleblower Advocates Attorneys specifically our New Jersey team today for a confidential consultation and take the first step towards holding fraudulent actors accountable.
This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.
