Diagnostic Laboratories and Radiology Pays $17.5 Million to Settle Diagnostic False Claims
According to the False Claims Act complaint, two former Diagnostic Lab employees, Jon Pasqua and Jeff Houser alleged that Diagnostic Labs charged Skilled Nursing Facilities (SNFs) in California reduced amounts for inpatient services paid by Medicare Part A in exchange for the SNFs referral of outpatient business to Diagnostic Labs. This allowed Diagnostic Labs to have a stream of outpatient referrals that were directly billed to Medicare Part B and Medi-Cal.
Providing illegal inducements results in increased costs and unnecessary services overburdened healthcare system nationwide. Courageous whistleblowers are needed to stem the tide of this continuing problem.