Quest pays $13 million to US government:
This article was originally published in Clinica
Executive Summary
Quest Diagnostics has agreed to a $13.1 million settlement relating to US federal healthcare fraud allegations against its Nichols Institute. The billing and marketing practices in question took place from 1989 - Quest bought Nichols in 1994 and says they were stopped shortly after. The government says that clinical laboratories billed for tests that were not medically necessary. Quest denies the government's claims, arguing that the government had identified the practices as "common industry practices". The cost of the settlement will be covered by Corning, Quest's parent at the time of the Nichols acquisition.