Lab to pay $10.5M to settle fraud allegations

A Lexington, Ky.-based lab has agreed to pay nearly $10.5 million to settle allegations it billed Medicare and Medicaid for medically unnecessary urine drug testing. 

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The settlement comes after LabTox’s owner and its compliance officer were convicted and sentenced for their roles in the scheme, according to a Feb. 16 Justice Department news release. 

In December, LabTox owner Ronald Coburn, 76, was sentenced to 46 months in prison. Compliance officer Erica Baker, 31, was sentenced to six months in prison followed by six months of home confinement, the release said.    

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