Pathway Genomics, a San Diego-based medical diagnostic laboratory, has paid $4 million to settle claims it violated the False Claims Act by paying improper kickbacks to physicians and physician groups in exchange for patient referrals, according to the Department of Justice.
Pathway provides analysis of genetic testing kits within the field of clinical genomics, including tests that analyze the risk for certain genetic diseases. The settlement resolves allegations that Pathway offered physicians and medical groups up to $20 for each kit they collected and submitted to Pathway for testing. Individual physicians received as much as $13,534 in reimbursement from Pathway as part of the kickback scheme.
The settlement also resolves allegations that Pathway billed federal healthcare programs for the tests the physicians improperly referred.
The allegations against Pathway were originally brought under the qui tam provision of the False Claims Act by a former Pathway employee.
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