The Brief
- Dallas-based Magnolia Diagnostics and its owners will pay $19.2 million to resolve allegations of billing Medicare for unnecessary respiratory tests.
- Investors will pay another $4.8 million over claims they improperly benefited from the laboratory’s conduct.
- Federal investigators said the company bundled the tests with COVID-19 screenings at senior living communities, sometimes without valid orders.
A Dallas-based clinical laboratory and its investors will pay $24 million to resolve allegations that performed unnecessary tests on seniors who received COVID-19 tests.
Magnolia Diagnostics, and its owners, John Bains and Kelly Bains, will pay $19.2 million to resolve allegations that they violated the False Claims Act by billing Medicare for unnecessary respiratory tests performed on seniors who were getting COVID-19 tests.
Investors in the laboratory agreed to pay $4.8 million to resolve common law claims for unjust enrichment and payment by mistake and claims under the Federal Debt Collection Procedures Act.…