Lab company to pay $3.6M to settle Medicaid fraud allegations

Radeas, a Wake Forest, N.C.-based laboratory, has agreed to pay $3.6 million to resolve allegations it submitted false claims for urine tests to the state's Medicaid program.

The North Carolina attorney general's office said in an Oct. 3 news release that Radeas performed presumptive and definitive urine drug tests at the same time, which is not medically necessary. Radeas conducted both tests at the same time without supporting clinical documentation and was reimbursed for Medicaid funds to which it was not entitled. 

The alleged medically unnecessary tests occurred between Jan. 1, 2016, and Sept. 30, 2021, according to the release. 

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