Lab, Pain Clinic, Former Executives Agree to $41 Million Settlement for Unnecessary Drug Testing
- April 17, 2020
U.S. Attorney for the Eastern District of Pennsylvania William McSwain announced April 15 that reference laboratory Logan Laboratories, Inc., Tampa Pain Relief Centers, Inc., and two former executives, Michael T. Doyle and Christopher Utz Toepke, agreed to pay $41 million to resolve allegations that they fraudulently billed Medicare, Medicaid, TRICARE, and other federal health care programs for medically unnecessary Urine Drug Testing (UDT).
The government alleged that defendants developed and implemented a policy and practice of automatically ordering both presumptive and definitive UDT for all patients at every visit, without any physician making an individualized determination that either test was medically necessary for the patients, a press release said.
In addition to the settlement, Logan Labs and Tampa Pain also entered into a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General.
The claims resolved by the settlement are allegations only, there has been no determination of liability.