ANTI-KICKBACK

Alabama Doctors, Cardio Practice, Settle Genetic Testing Kickback Claims for $1.1 Million 

Case: Three doctors and a cardiology practice, all based in Alabama, have agreed to shell out $1.1 million for allegedly taking bribes from a now-bankrupt genetic testing company in the Seattle area. The DOJ claims that Natural Molecular Testing Corporation (NMT) paid doctors as much as $10,000 per month in consulting fees in exchange for referrals of high-complexity tests that were then billed to Medicare.

Significance: In 2015, after entering Chapter 11, NMT settled claims related to its part in the scheme for $71.1 million. In addition to paying kickbacks, the genetic test lab was accused of a litany of billing violations, including billing for tests that weren’t medically necessary, failure to document completion of the testing, submitting multiple billing claims for the same date of service and billing genetic tests used for screening purposes (which Medicare doesn’t cover).

 

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