LabCorp Reaches $49.5M Deal To End Medi-Cal Fraud Suit

By Roxanne Palmer (August 30, 2011, 8:37 PM EDT) -- Laboratory Corp. of America Holdings has agreed to pay $49.5 million to settle a California lawsuit alleging it illegally overcharged state Medicaid program Medi-Cal for laboratory tests and gave kickbacks in exchange for Medi-Cal referrals, California's attorney general announced Tuesday.

"Medical providers and professionals who attempt to abuse Medi-Cal are draining healthcare resources from the millions of California families and children who rely on the program," California Attorney General Kamala D. Harris said.

The suit originated with a qui tam complaint filed in 2005 by whistleblower Chris Riedel and his company Hunter Laboratories Inc., alleging that LabCorp and other laboratories had...

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