Plus   Neg

Genetic Testing Co. Facing 25-year Exclusion From Federal Health Care Program


Genetic testing firm UTC Laboratories, also called RenRX, and its principals agreed to pay $42.6 million towards settling allegations that they paid kickbacks in exchange for laboratory referrals and billing for tests, which were not necessary, the U.S Department of Justice said in a statement.

RenRX agreed to pay $41.6 million, and its three principals will pay $1 million for resolving the allegations for which liability is yet to be determined.

RenRX has also agreed to be banned for 25 years from participating in any federal healthcare program.

The DoJ said this settlement is part of its actions to ensure that taxpayer monies are well spent and not wasted and abused on unnecessary medical testing by providers in the healthcare markets.

UTC and its principals are alleged to have performed these actions between 2013 and 2017.

The allegations were investigated by the U.S. Attorney's Office for the Eastern District of Louisiana and the Department of Justice's Civil Division, in conjunction with the Department of Health and Human Services Office of Inspector General (HHS-OIG) and the Federal Bureau of Investigation (FBI).

This settlement resolves allegations in six lawsuits pending in the United States District Court for the Eastern District of Louisiana.

The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims. The individuals are also paid a share of the recovery or settlement, which is yet to be determined.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT