Guardant Health, a precision oncology company, has agreed to pay more than $900,000 to settle allegations that it submitted false claims to Medicare and Tricare.
According to a July 16 news release, the Justice Department alleged in April 2021 that a physician based in Austin, Texas, contacted the Palo Alto, Calif.-based lab's human resources department to recommend a family friend for an account manager position. Guardant hired the family friend for the role.
In October 2021, the physician again contacted the company seeking a position for his stepdaughter upon her graduation from college. She was considered but rejected for a position in Guardant's screening division. However, in February 2022, two Guardant employees arranged for the family friend to be promoted, creating a role in the oncology division for the stepdaughter. These employees were aware of the relationship between her and the physician and knew that she was not qualified for the role.
According to the release, the physician allegedly ordered significantly more Guardant tests per quarter after both hirings.
Guardant cooperated with the government's investigation and took prompt and substantial remedial measures. The company ceased billing federal healthcare programs for tests ordered by the physician and terminated the employment of the family member.