Nevada clinical lab to pay up to $16M over fraud allegations 

Nevada-based clinical laboratory MD Labs and two of its owners and co-founders will cumulatively pay between $11.6 million and $16 million to resolve allegations that they billed federal programs for medically unnecessary urine drug testing, according to a Justice Department statement.

According to the settlement agreement, MD Labs and its owners, Denis Grizelj and Matthew Rutledge, admit that they regularly billed federal health care programs for medically unnecessary presumptive and confirmatory urine drug testing between 2015 and 2019.

The lab allegedly performed both types of tests at approximately the same time, then simultaneously submitted the results of each to health care providers.

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