News
12:49 pm
Wed May 21, 2014

Mass. Lab Settles W.Va. Health Care Fraud Case

U.S. Attorney Booth Goodwin
U.S. Attorney Booth Goodwin

  A Massachusetts clinical testing lab will pay the federal government more than $4 million to settle a health care fraud case in West Virginia.

U.S. Attorney Booth Goodwin announced the $4.67 million settlement with Calloway Laboratories, Inc. on Wednesday.

Goodwin says in a news release that an investigation found that Calloway Laboratories performed a medical review with urine drug screens that isn't covered by Medicare or West Virginia's Medicaid program. The company submitted claims for the review using a code for pathology services, which are covered.

Calloway Laboratories did not admit any liability in the settlement.

The company says in a statement that the settlement resolves a legacy issue that involved a disagreement about services that were ordered and performed, but weren't covered. The issue dated back to previous management.