Lab-Testing Firm Settles Case on Medi-Cal Overbilling
Last week, California Attorney General Kamala Harris (D)Â announced that Laboratory Corporation of America will pay $49.5 million to settle a lawsuit alleging that the company overcharged Medi-Cal, California's Medicaid program. North Carolina-based LabCorp is the second largest provider of medical laboratory testing services in California. The lawsuit -- filed by Hunter Laboratories, a separate diagnostic lab-testing company -- claimed that the company charged Medi-Cal more than five times the amount it charged other customers for certain tests. The LabCorp settlement comes after Quest Diagnostics agreed to pay the state $241 million to resolve a similar lawsuit earlier this year. Similar cases are pending with three other defendants.
- "California Settles Overcharging Lawsuit With LabCorp" (Anderson, Sacramento Business Journal, 8/30).
- "Laboratory Corporation Will Pay $49.5 Million To Settle Suit" (Rosenblatt, Bloomberg/BusinessWeek, 8/30).
- "California Reaches $49.5 Mln Settlement With Lab Corp" (FitzGerald, Dow Jones/Wall Street Journal, 8/30).