San Diego lab pays $2M to settle false claims allegations

A diagnostic laboratory testing company in San Diego agreed to pay $2 million to resolve allegations of submitting false claims to Medicare.

The Department of Justice accused Biotheranostics of submitting and causing the submission of false claims to Medicare for Breast Cancer Index tests. The department alleged Biotheranostics promoted and performed the tests when they weren't needed to diagnose and treat breast cancer.

The DOJ claimed Biotheranostics ordered the tests for patients who hadn't been in remission for five years and who hadn't been taking the breast cancer treatment tamoxifen. Based on clinical practice guidelines, the tests were not reasonable and necessary, according to the department.

While Biotheranostics agreed to pay the settlement, it's not a determination of liability.

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