A Seattle-based medical testing laboratory, FidaLab, LLC, has agreed to pay $2 million to the federal government following 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 after its request to bill a series of Urinary Tract Infection tests as a panel was denied. Instead of using a single billing code as required, FidaLab submitted claims under multiple billing codes. While the company did not admit wrongdoing, it agreed to resolve the matter with the payment.
“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.”
“Laboratories entrusted with taxpayer-funded health care programs must submit truthful and accurate claims,” said Robb R. Breeden, Acting Special Agent in Charge with HHS-OIG. “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, FidaLab has also agreed not to seek reimbursement for these disallowed costs from any patients affected by these billings.
The case was investigated by HHS-OIG and negotiated by Assistant United States Attorney Matt Waldrop, with investigative analyst Ryan Hardy providing significant assistance.
