Labcorp to pay whistleblowers $19M to settle kickback, false claims lawsuit

Labcorp is settling a $19 million kickback and false claims lawsuit brought by two whistleblowers, according to a news release shared with Becker's.

Florence, S.C. residents Scarlett Lutz, owner of a medical billing services company, and Kayla Webster, RN, sued Labcorp for allegedly defrauding government healthcare programs by providing blood draws to providers who were receiving cash kickbacks from one to two other labs named in the suit.

Labcorp allegedly provided physicians with blood draws and ordered medically unnecessary tests which it billed to government healthcare programs for reimbursement, according to the news release. In exchange, the participating physicians allegedly accepted kickbacks disguised as draw fees or process and handling fees from Health Diagnostic Laboratory and Singulex.

Labcorp has denied all allegations related to the lawsuit, and the settlement made no determination of liability, according to the news release. 

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