Jonathan K. Tycko Libel, Slander and Defamation Law Blog on Lawyers.com

Whistleblowers in California recently have made compelling allegations against private medical labs in the state.

Friday, June 19, 2009 by Jonathan K. Tycko

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Whistleblower in California recently have made compelling allegations against private medical labs in the state.  According to California Attorney General Brown, allegations of "massive Medi-Cal fraud and kickbacks," are being made against seven companies, some of them very large. According to the allegations, hundreds of millions of dollars in illegal overcharges to the Medi-Cal program, taking place over the past 15 years, have been discovered.

Whistleblower Chris Riedel, CEO of Hunter Laboratories, said, "I confirmed with the California Department of Health Care Services that these practices were illegal. We then had a choice--either join the other labs in violating the law or be unable to compete for business. We choose to suffer the financial consequence, and follow the law."

The defendants include Quest Diagnostics, Health Line Clinical Laboratories, Westcliff Medical Laboratories, Physicians Immunodiagnostic Laboratory, Whitefield Medical Laboratory, Seacliff Diagnostics Medical Group and Laboratory Corporation of America.

California law states that "no provider shall charge [Medi-Cal] for any service…more than would have been charged for the same service…to other purchasers of comparable services…under comparable circumstances."

According to the allegations, the defendants charged Medi-Cal up to six times as much as they charged some of their other customers for the very same tests.

If you have acted as a whistleblower at your company, or have faced harassment or been terminated for opposing fraud on the government, our attorneys can help.  We understand and are experienced in matters under the False Claims Act and other qui tam laws.

Tycko & Zavareei LLP

2000 L Street, N.W. Suite 808 Washington, D.C. 20036

FraudFighters.Net

 
Posted at 08:26 AM
Topic: Libel, Slander and Defamation
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