“Prioritizing profit over complying with the law wastes hard-earned taxpayer dollars.” Newsletter CHICAGO A suburban Chicago diagnostics company that provides home sleep testing will pay 3.5 million to the United States to settle a civil lawsuit accusing the company of defrauding Medicare and four other federal health care programs through kickbacks and unnecessary home sleep testing. “Laboratories that bill for medically unnecessary tests drain funds from Medicare and other federally funded health care programs,” U.S. The original False Claims Act allegations were brought in a lawsuit filed by a private whistleblower who, under legal provisions, can file an action on behalf of the government and share in any financial recovery - in this case, 17%. “Since that time, Inform has put stringent protocols in place to avoid a reoccurrence of this type of coding procedure,” the company said.

Inform in a statement said it changed the practices that led to to the settlement four years ago. Department of Justice (DOJ) this week announced that Inform Diagnostics, formerly known as Miraca Life Sciences, has agreed to pay 16 million to resolve allegations that it submitted false claims for payment to Medicare and other federal healthcare programs. The company said it provides services to about 1,300 clients who represent more than 2,700 physicians.

Fulgent Genetics agreed to acquire the company in April. Inform Diagnostics, formerly Miraca Life Sciences Inc., is based in Irving, Texas, and has lab space in Phoenix and Needham, Massachusetts. The company submitted these tests for payment by federal health care programs, prosecutors said.

Inform diagnostics lawsuit