Summary
San Diego-based Precision Diagnostics has agreed to pay $27 million to settle allegations that it improperly billed Medicare and Medicaid for unnecessary drug tests. The claims, brought by the U.S. government, stemmed from practices that allegedly violated the False Claims Act by promoting excessive testing through “custom profiles” for patients.
The settlement addresses accusations that Precision Diagnostics engaged in practices that inflated the number of urine drug tests billed to federal health care programs between January 2013 and December 2022. The government claimed that these tests were not medically necessary and that the company violated the Anti-Kickback Statute by providing free drug test cups to doctors in exchange for referrals. As part of the settlement, Precision Diagnostics will implement a corporate integrity agreement to enhance compliance and oversight for the next five years, ensuring adherence to regulatory requirements. The settlement also includes compensation to several states for Medicaid claims and a reward for one of the whistleblowers involved in the case.
San Diego company pays $27M to settle claims of billing for unnecessary drug tests
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