Keilty Bonadio Secures $27 Million Settlement in Collaboration with DOJ and Maryland U.S. Attorney’s Office

Keilty Bonadio, in partnership with the Maryland U.S. Attorney’s Office and the Department of Justice (DOJ), played a key role in securing a $27 million settlement with Precision Toxicology, LLC. This settlement resolves allegations that the company engaged in fraudulent billing practices.

This settlement not only highlights the pervasive issue of healthcare fraud but also demonstrates Keilty Bonadio’s unwavering commitment to holding companies accountable for defrauding taxpayers and violating federal law.

Overview of the Case

The settlement stems from allegations that Precision Toxicology, a California-based clinical laboratory, engaged in unnecessary drug testing practices that violated the False Claims Act (FCA).

The settlement resolves claims brought forward under the qui tam provision of the FCA, which allows whistleblowers to file lawsuits on behalf of the government.

Keilty Bonadio’s Role in the Settlement

As part of the legal team working alongside federal prosecutors, Keilty Bonadio leveraged its extensive expertise in healthcare fraud litigation to help uncover and address the alleged misconduct. The firm’s attorneys worked tirelessly to:

• Analyze complex billing records to identify patterns of fraudulent behavior.
• Coordinate with whistleblowers to ensure their claims were substantiated with evidence.

Through its involvement, Keilty Bonadio demonstrated its ability to navigate complex federal cases and work collaboratively with government agencies to achieve justice.

The Impact of Healthcare Fraud

Healthcare fraud costs the U.S. government billions of dollars each year and undermines the integrity of federal healthcare programs like Medicare and Medicaid.

• Financial Impact: Fraudulent billing depletes resources meant to provide care for those in need, placing a strain on taxpayers.
• Patient Harm: When medical decisions are influenced by financial incentives, patients may receive unnecessary or inappropriate care, jeopardizing their health.
• Erosion of Trust: Fraudulent practices erode public confidence in the healthcare system and the providers tasked with delivering care.

This settlement sends a clear message that such behavior will not be tolerated and that both the government and legal advocates like Keilty Bonadio are committed to protecting the public interest.

The False Claims Act: A Powerful Tool in Fighting Fraud

The False Claims Act (FCA) served as the foundation for the government’s case against Precision Toxicology. Enacted during the Civil War, the FCA is the government’s primary weapon against fraud. It imposes liability on entities that knowingly submit false claims for payment to federal programs.

Qui Tam Provision and Whistleblower Role

A unique feature of the FCA is its qui tam provision, which allows private individuals (referred to as “relators” or whistleblowers) to file lawsuits on behalf of the government.

• Whistleblowers are often insiders with firsthand knowledge of fraud.
• In successful cases, whistleblowers are entitled to a percentage of the recovered funds, incentivizing individuals to come forward with evidence.

Precision Toxicology Settlement: Key Details

Financial Breakdown

Under the settlement, Precision Toxicology agreed to pay:

• $27 million to resolve claims of unnecessary testing and illegal kickbacks.
• A portion of this amount will be allocated to the whistleblowers who initiated the lawsuit under the FCA.

Corporate Integrity Agreement (CIA)

As part of the settlement, Precision entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).

• The CIA requires enhanced compliance measures, including independent reviews of the company’s billing practices, to prevent future violations.

Deterrence and Accountability

The settlement serves as a deterrent to other healthcare providers and laboratories, emphasizing that fraudulent practices will have severe financial and reputational consequences.

Keilty Bonadio’s Commitment to Fighting Fraud

Keilty Bonadio has a proven track record of advocating for justice in complex fraud cases. The firm’s role in this settlement underscores its commitment to:

• Protecting taxpayers: Ensuring public funds are used appropriately.
• Supporting whistleblowers: Advocating for individuals who expose wrongdoing, often at great personal and professional risk.
• Promoting accountability: Holding corporations accountable for violations of the law.

The Broader Implications of the Settlement

Strengthening Oversight in Healthcare

This settlement highlights the need for greater oversight and transparency in the healthcare industry. Government agencies and legal professionals must remain vigilant in identifying and addressing fraudulent practices.

Encouraging Whistleblowers

The success of this case demonstrates the critical role whistleblowers play in uncovering fraud. It also underscores the importance of legal protections for individuals who come forward with evidence of wrongdoing.

Restoring Trust in the System

By holding companies like Precision Toxicology accountable, settlements like this help restore trust in federal healthcare programs and the broader healthcare system.

Looking Ahead: A Call to Action

The settlement with Precision Toxicology is a significant victory in the fight against healthcare fraud, but there is still much work to be done.

• For Healthcare Providers: Adopt transparent and compliant billing practices to avoid the risks associated with fraud investigations.
• For Whistleblowers: Recognize the power of the FCA and consider coming forward if you suspect fraudulent activity.
• For Lawmakers: Strengthen policies and oversight mechanisms to prevent fraud before it occurs.

Contact Keilty Bonadio for Assistance

If you have information about healthcare fraud or believe you may have been affected by such practices, contact Keilty Bonadio today. Our experienced attorneys can provide the guidance and representation you need to protect your rights and seek justice.

Call us at 410-469-9953 or fill out our online contact form to schedule a free consultation. Together, we can make a difference in the fight against fraud and corruption.