Quest Diagnostics, Inc., the Secaucus, New Jersey-based laboratory testing company, has paid $13,014,576 plus interest to resolve federal allegations that it submitted false claims to Medicare and the New York and New Jersey Medicaid programs.
The settlement, announced November 6 by U.S. Attorney Robert Frazer for the District of New Jersey, addresses claims that the company provided illegal kickbacks to health care providers and executives to induce patient referrals.
Prosecutors alleged that between July 25, 2013, and August 3, 2022, Quest offered valuable entertainment events free of charge to decision-makers at current and prospective client accounts. The benefits stemmed from a 2013 naming rights and sponsorship agreement with the New York
Giants that gave Quest suites at MetLife Stadium, along with marketing, hospitality, and other commercial advantages.
The events included suite seats at Giants home games with food, alcohol, and sometimes parking or field access for pre-game warmups; VIP training camp sessions with viewing near the field, meals, and player interactions; Draft Chalk Talks hosted by former Giants players that featured mock drafts, dinners, and facility tours; and Family Combine Days involving football drills, photos, and autographs.
The government claimed Quest targeted high-value accounts to maximize return on investment, required sales representatives to attend with invitees, and tracked revenue from those accounts for up to a year after the events during the 2013 through 2016 seasons. Quest then billed federal health care programs for lab testing referred by the entertained clients.
The company also entered a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General requiring independent reviews of its practices regarding payments and benefits to referral sources.
The case originated as a whistleblower lawsuit under the False Claims Act brought by Dr. Gerard Abate, Lori Anderson, and Dr. Douglas S. Rabin, who will share $2,472,769 of the recovery.
The settlement resolves allegations only, with no determination of liability.
This article originally appeared on Giants Wire: Quest settles federal claims over VIP Giants access for doctors
