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Tuesday, Oct 20 2015

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Drug Testing Lab Millennium Health To Settle Federal Suit For $256M

The government alleged that the largest U.S. lab-testing company charged Medicare for unnecessary tests and provided gifts to doctors in exchange for referrals. Millennium Health is expected to file for bankruptcy by Nov. 10 as part of a corporate restructuring.

Millennium Health agreed to pay $256 million to resolve government allegations that it billed Medicare for unnecessary tests. The company鈥檚 owners, including private-equity firm TA Associates Management LP and company founder James Slattery, plan to cover the federal settlement and make a separate payment to creditors, according to people familiar with the matter. (Jarzemsky and Weaver, 10/19)

Millennium Health LLC has agreed to pay $256 million to resolve claims it misrepresented the need for procedures and offered gifts to doctors in exchange for referrals. The biggest US lab-testing company plans to file for bankruptcy protection by Nov. 10, enabling it to turn over control of the company to its lenders, according to a person with knowledge of the matter. (Keller and Schoenberg, 10/20)

A drug testing lab has agreed to pay the federal government $256 million following allegations it billed federal healthcare programs for medically unnecessary testing. U.S. Attorney for Massachusetts Carmen Ortiz announced Monday that Millennium Health will pay $227 million to resolve allegations it billed Medicare, Medicaid, and other federal healthcare programs for unnecessary urine drug testing from Jan. 1, 2008 through May 20, 2015. (10/19)

In other marketplace news -

Community Health Systems Inc and seven of its hospitals violated employees' rights to discuss working conditions, punished labor organizing and refused to bargain with unions, a U.S. labor agency alleged on Monday. The National Labor Relations Board's Office of General Counsel said it issued a consolidated complaint involving 29 charges at hospitals in California, Ohio, Kentucky and West Virginia owned by Tennessee-based Community, the second-largest publicly traded U.S. hospital operator. (Wiessner, 10/19)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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