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Investigation in the business practices of the Health Diagnostics Laboratory, Inc has revealed illegal sales, billing practices, marketing and unethical practices as well.
The company has come to an agreement with the Department of Justice to settle all claims.
“When health care companies pursue profits by paying kickbacks to doctors, they undermine a patient’s ability to trust that medical decisions are being made for scientific reasons, not financial ones.” He goes on to say, “Those kickbacks also harm the taxpayer because they drive up the cost of federal health care programs with medically unnecessary tests. This significant settlement shows our determination to work with whistleblowers and our federal partners to defend the integrity of the health care system from illegal agreements that hurt patients and taxpayers,” said acting US Attorney Vincent Cohen Jr from DC.
HDL will have to pay more than $47 million to the US government as per the agreement and this amount can increase to $100 million over time.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,. We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens,” said Acting Assitanct Attorney General Benjamin C. Mizer.
The Department of Justice said that the claims settled through agreements only pertain to allegations and they don’t prove any kind of liability.
“We have taken the step of resolving this matter in order to put these allegations, which stemmed from historical practices once common in the industry, behind us. These allegations were made against a number of companies operating in the clinical laboratory industry by individuals who stand to personally profit by making these allegations,” said HDL.
