Dianon Systems will pay $1.5 million False Claims Act violation
Healthcare Auditing Weekly, November 6, 2007
Dianon Systems, Inc. will pay $1.5 million for allegedly violating the False Claims Act (FCA) and charging Medicare and TRICARE for medically unnecessary tests. Dianon, which is located in Stratford, CN, specializes in performing tests to detect and stage different types of cancer.
The suit alleged that Dianon falsely billed for tests that were not medically necessary for patients. They allegedly performed 26 flow cytometry tests on every sample that was sent to the company for diagnosis, even when the tests weren't essential.
Dr. James Tiesinga, a pathologist and former employee, filed the original suit under the qui tam provisions of the FCA. He will receive $300,000 in the settlement.
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