Patients Choice Laboratories (PCL), a diagnostic lab based in Indianapolis, has agreed to a $9.62 million settlement over allegations of violating the False Claims Act and engaging in kickback schemes, according to the U.S. Attorney’s Office for the Southern District of Indiana. PCL was accused of billing Medicare for unnecessary respiratory pathogen panel (RPP) tests and offering under-the-table payments to secure referrals.
The case details that on November 20, 2020, PCL signed a Marketing Services Agreement with an infection prevention company, paying $5,000 monthly for so-called “marketing and management services” at long-term care facilities. Federal authorities allege this agreement was a front for purchasing test referrals, which were then inappropriately billed to Medicare.
Investigators also claim PCL paid the company to collect samples in long-term care centers and used the same specimens to run medically unnecessary RPPs. U.S. Attorney Tom Wheeler said, “Kickback arrangements that drive unnecessary testing waste taxpayer dollars and undermine the integrity of our healthcare system.” Between December 2020 and May 2022, PCL reportedly paid $1.86 million for RPP referrals and received over $6 million in Medicare reimbursements…