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New York Lab To Settle False Claims Act Case for $6 Million

By Martin & Jones on October 30, 2014

Bostwick Laboratories, Inc., an anatomic and pathology lab based in Uniondale, New York, has agreed to pay $6,048,000 to resolve claims pursued under the False Claims Act. The qui tam (“whistleblower”) lawsuit alleged that Bostwick improperly offered incentives to physicians in exchange for referrals and billed for unordered tests and services.

The whistleblower lawsuit was filed in May 2008, alleging that Bostwick Laboratories improperly billed Medicare and Medicaid for tests and services referred in violation of the Anti-Kickback Statute and for tests performed without a doctor’s order or consent. Bostwick Laboratories has agreed to pay the United States $6,048,000 to settle the case.