New Jersey lab, owner to pay $13M to settle fraud allegations

Kenilworth, N.J.-based clinical laboratory RDx Bioscience and its owner have agreed to pay more than $13 million to resolve allegations of kickbacks and unnecessary testing.  

The lab and owner Eric Leykin, who is also the CEO, will pay more than $10.3 million to the U.S. and more than $2.9 million to New Jersey's Medicaid program, according to a Jan. 10 Justice Department news release. 

The settlement resolves five types of kickback allegations:

1. From 2018 to 2022, the lab and Mr. Leykin allegedly paid commissions based on the volume and value of Medicare and Medicaid referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests.

2. From 2018 to 2022, RDx marketer Corum Group allegedly paid healthcare providers thousands in purported management services organization payments, which were disguised as investment returns but actually were offered to induce the providers to order RDx laboratory tests. 

3. From 2017 to 2023, RDx marketers BeauMed Consultants and Ralston Health Group  allegedly paid thousands of dollars to healthcare providers that were disguised as consulting or medical director fees but were actually offered to induce orders, among other things, for RDx laboratory tests. 

4. From 2019 to 2020, RDx marketer Seaworthy Recovery Services allegedly paid thousands in kickbacks to one or more principals of certain substance abuse recovery centers to induce their referrals to RDx for laboratory testing. 

5. RDx and Mr. Leykin allegedly paid specimen collection fees to the staff members of referring healthcare providers to induce those providers to order RDx laboratory testing. 

RDx and Mr. Leykin also allegedly submitted or caused false claims to be submitted to Medicare and Medicaid for unnecessary urine drug tests from 2017 to 2023, according to the release. 

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