Tuesday, May 24, 2011

Quest Diagnostics In Deal To Pay $241 Million . . . another repeat player

Quest Diagnostics is one of seven private medical labs being sued by the state of California for costing the state hundreds of millions of dollars by overcharging Medi-Cal by as much as 400 percent. The whistleblower in this case is Chris Riedel, CEO of Hunter Laboratories, who refused to join in the price-gouging practices. The seven defendants are: Quest Diagnostics; Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America.

Quest Diagnostics is a repeat player, having previously paid $302 million to settle federal civil and criminal charges related to a Quest subsidiary which sold a parathyroid hormone immunoassay test which reported elevated results.  Quest then had to pay an additional $12.5 million to settle state claims concerning the accuracy of diagnostic tests. 

Here is the qui tam complaint:
CA v. Quest Complaint

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