Richmond, Va.-based Health Diagnostics Laboratory and Alameda, Calif.-based Singulex have agreed to pay the federal government a combined $48.5 million to resolve allegations they violated the False Claims Act, according to the Department of Justice.
The government alleged HDL and Singulex, along with other parties, unlawfully paid physicians handling fees of between $10 and $17 for each patient they referred to the labs for blood tests. The labs also allegedly routinely waived patient co-payments and deductibles.
The physician kickbacks led to patients being referred to the labs for unnecessary tests, which were then billed to federal healthcare programs, according to the DOJ.
Under the settlement agreement, HDL will pay $47 million and Singulex will pay $1.5 million. HDL and Singulex have also agreed to enter into corporate integrity agreements with HHS.
The allegations made against the two companies stem from three lawsuits filed under the qui tam, or whistle-blower, provision of the False Claims Act.
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