Lab-Testing Company Settles Medi-Cal Overbilling Lawsuit
Quest Diagnostics, a diagnostic laboratory testing company, will pay $241 million to settle a civil lawsuit alleging that the company overcharged Medi-Cal, California's Medicaid program. The lawsuit -- filed by Hunter Laboratories in California Superior Court -- claimed that Quest Diagnostics failed to comply with "comparable charge" regulations that led to overpayments for lab-testing services. Under the agreement, the company will provide Medi-Cal with a discount through July 2012.
- "Quest Diagnostics To Pay $241 Mln To Settle Lawsuit" (Jain, Reuters, 5/9).
- "Quest Diagnostics In Deal To Pay $241 Million To Resolve Medicaid Suit" (Pollock, Dow Jones/Wall Street Journal, 5/9).