A Seattle-based medical testing laboratory, FidaLab, LLC, has agreed to pay $2 million to resolve allegations that it overbilled government health care programs. The announcement was made by U.S. Attorney Charles Neil Floyd.
The investigation, conducted by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), found that FidaLab improperly billed Medicare for Urinary Tract Infection tests. After being denied permission to bill these tests as a panel under a single code, FidaLab instead billed them under multiple codes. Although FidaLab did not admit any wrongdoing, the payment settles the matter.
“We all have a stake in keeping healthcare costs under control,” said U.S. Attorney Neil Floyd. “Manipulating billing codes to overcharge for tests is an obvious area where we need to root out fraud. This case should be a warning to other companies to make sure they are billing for healthcare services appropriately.”
Robb R. Breeden, Acting Special Agent in Charge with HHS-OIG, stated: “Laboratories entrusted with taxpayer-funded health care programs must submit truthful and accurate claims. Submitting false laboratory testing claims wastes critical resources and undermines trust in our health care system. HHS-OIG will continue working with our law enforcement partners to ensure taxpayer dollars are used as intended—to provide care for the American people.”
As part of the settlement agreement, FidaLab will not seek payment from patients for any costs related to these improper billings.
The investigation was led by HHS-OIG and the settlement negotiations were handled by Assistant United States Attorney Matt Waldrop with assistance from investigative analyst Ryan Hardy.
