Alabama Hospital and Lab Subsidiary Agree to $4.25 Million Kickback Settlement

Case: Aperian Laboratory Solutions and its parent East Alabama Medical Center will fork over $4.25 million + legal costs to settle charges of paying kickbacks for referrals and then falsely billing Medicare for the ill-gotten tests. The case contends that Aperian paid percentage commissions kickbacks to a pair of nationwide marketing companies in exchange for arranging doctors to refer toxicology tests to the lab. The companies, Summit Diagnostics and Compass Laboratory Solutions, entered into separate settlements of nearly $2 million.

Significance: The case began when a former Aperian employee told his supervisors about the scheme and asked them to stop it. When those calls fell on deaf ears, he brought a qui tam whistleblower lawsuit and now stands to collect between 15% to 25% of the total recovery.