Three clinical laboratories and two of their owners recently agreed to pay $5.7 million to resolve allegations they submitted false claims to Medicare as part of a kickback scheme.
The U.S. Justice Department alleges that Metric Lab Services, Metric Management Services and Spectrum Diagnostic Labs, along with owners Sherman Kennerson and Jeffrey Madison participated in a genetic testing fraud scheme with marketers.
The marketers solicited genetic testing samples from Medicare beneficiaries and arranged to have a physician fraudulently attest to their medical necessity, the department said in a July 22 news release. Metric and Spectrum allegedly processed the tests, received reimbursement from Medicare and paid a portion of that reimbursement to the marketers.
The labs operated in Mississippi and Texas, according to the department.
Mr. Kennerson and Mr. Madison each previously pleaded guilty to one count of conspiracy to defraud the U.S. in connection with the scheme and are awaiting sentencing.