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QUEST DIAGNOSTICS TO PAY $241 MILLION FOR FALSE CLAIMS BILLED TO MEDICAID

According to the Wall Street Journal, Quest Diagnostics has agreed to pay $241 million to settle a Medicaid fraud lawsuit.  The lawsuit alleged Quest over charged California’s Medicaid program for diagnostic testing.  The lawsuit was filed under the California False Claims Act.

The lawsuit was filed by one of Quest’s competitors, Chris Riedel, CEO of Hunter Laboratories, whose company refused to price-gouge. Six other companies were sued for similar claims, including Health Line Clinical Labs; Westcliff Medical Labs; Physicians Immunodiagnostic Laboratory; Whitefield Medical Laboratory; Seacliff Diagnostics Medical Group, and; Laboratory Corporation of America.

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