One of the nation’s largest urine drug testing laboratories recently settled with the federal government by paying $27 million to resolve alleged violations of the federal False Claims Act (FCA) and state statutes. Precision Toxicology (d/b/a Precision Diagnostics), headquartered in San Diego, allegedly provided medically unnecessary urine drug testing and offered free items to physicians to induce them to order expensive urine tests.
The settlement, which does not include admissions of liability because no such determinations were made, is the culmination of three separate lawsuits filed by whistleblowers. One of the whistleblowers will receive over $2.7 million as his share of the recovery, the federal government will receive $18.2 million, and certain affected states that provided Medicaid payments to Precision will receive the remainder. One of the lawsuits remains partially sealed.
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