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Whistleblower Lawsuit Accuses Quest Diagnostics of Bilking Medicaid Program

According to a whistleblower lawsuit, Quest Diagnostics and Laboratory Corporation of America Holdings committed Medicaid fraud by billing the program in Virginia a higher rate than other customers. Quest is the largest operator of medical labs in the United States.

Hunter Laboratories LLC and its CEO Chris Riedel submitted the whistleblower complaint. They contend that the two companies submitted false claims for payment of laboratory tests that were Medicaid covered by falsely presenting that the fees charged were not any higher than the maximum payable under regulations in Virginia, where the program was located. The plaintiffs claim that Quest billed Medicaid up to $10.42 for an automated hemogram, even though others were billed as little as $1.42 for the common blood test.

The Medicare fraud lawsuit is accusing LabCorp. of billing Medicaid fees way over what Premier Inc. purchasing collective members were charged. Riedel and Hunter have also filed fraud claims against the two companies in Georgia.

The company and its CEO are not the first to bring such claims against Quest. Another lawsuit was settled for $241 million in California. That whistleblower accused the medical lab operator of overbilling Medi-Cal.

Medicare Fraud
Medicare fraud costs everyone money-not just the company or program that is being overbilled. It is important to stop this type of fraud, which is one reason that whistleblowers play such an important role.

At Altman & Altman, LLP, our Boston whistleblower lawyers work with parties seeking to file cases on behalf of the federal government. We know how much courage it takes to step forward and speak out about fraudulent conduct and we are here to protect our whistleblower clients’ rights while making sure that they get any compensation that they are owed. The False Claims Act includes a qui-tam provision that not only lets citizens sue on behalf of the Federal Government but also entitles the plaintiff to a percentage of the recovery. If you are aware of Medicare fraud being perpetuated against the government, contact our Boston Medicare fraud law firm today.

Whistleblower suit claims Quest Diagnostics, of Madison, defrauded Virginia Medicaid program, NJ.com, September 11, 2013
Stop Medicare Fraud, US Department of Justice and US Department of Health & Human Services

Attorney General Kamala D. Harris Announces $241 Million Settlement with Quest Diagnostics, OAG.CA.Gov, May 19, 2011

More Blog Posts:
Shands Hospital to Pay $26M to Settle Medicare Fraud Case Brought by Whistleblower, Boston Injury Lawyer Blog, August 28, 2013

$34M Medicare Fraud Settlement is Reached with 55 Hospitals, Including Facilities in Boston and Fall River, Boston Injury Lawyer Blog, July 12, 2013

Indian Pharmaceutical Company Ranbaxy to pay $500 million in Criminal and Whistleblower Case, Drug Injury Lawyers Blog, June 6, 2013