Burbank Lab Settles Kickback Case for $17.5M
LOS ANGELES (CN) - A lab accused of submitting kickback-tainted false claims to Medicare and California's Medicaid program agreed to a $17.5 million settlement.
Kan-Di-Ki dba Diagnostic Laboratories and Radiology provides lab and x-ray services to patients at nursing homes in Southern California.
Prosecutors said the Burbank, Calif., lab charged these facilities below-cost rates for Medicare Part A business, in exchange for referrals by those facilities of Medicare Part B and Medi-Cal business.
Jon Pasqua and Jeff Hauser, former Diagnostic Labs employees, had brought the underlying suit under the False Claims Act in 2010.
As whistle-blowers, the men are entitled to $3.7 million from the government's $12.95 million federal recovery. Their share of California's $4.55 million recovery has not yet been determined.