Corporate Compliance

Seven California companies indicted in 'massive' Medicaid fraud scheme

Compliance Monitor, March 25, 2009

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On March 20, California Attorney General Jerry Brown joined a whistleblower suit that alleges seven companies operating in California overcharged the state for laboratory tests, according to a Department of Justice (DOJ) press release.
 
A state investigation revealed the companies’ laboratories were provided discounts when paid directly by doctors, patients or hospitals—sometimes up to six times cheaper than what they charged Medicaid for the same tests, according to the DOJ. Brown believes the state can recover hundreds of millions in overpayments from the case.
 
The press release named Physicians Immunodiagnostic Laboratory, Westcliff Medical Laboratories, Whitefield Medical Laboratory, Seacliff Diagnostics Medical Group, Quest Diagnostics, Laboratory Corp. of America,  and Health Line Clinical Laboratories, now known as Taurus West, as the defendants in the case.



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