Nevada based MD Labs agrees to settlement, up to $16 million


Between 2015-2019, MD Labs submitted medically unnecessary testing for billing reimbursement.  The lab would bill federal healthcare programs for presumptive and confirmatory testing at the exact same time, rendering the purpose of the presumptive testing moot.  With laboratory urine drug testing there are typically two types of testing.  Presumptive testing is a relatively inexpensive test which provides qualitative results and then Confirmatory testing is much more expensive and provides quantitative results.  The frequency with which MD Labs was billing for confirmatory tests showed that the lab was not reviewing the presumptive results before submitting for confirmatory testing.  Because the testing was medically necessary it is considered a violation of the False Claims Act.  The lab and it's owners will pay up to 16 million dollars to resolve these claims.  

If you know that your employer or any other person or company submits false claims, pays illegal kickbacks, or otherwise defrauds federal health care programs like Medicare, Medicaid, or Tricare, contact the experienced whistleblower attorneys at Keilty Bonadio for a free, confidential consultation. 

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