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Wed May 21, 2014
Mass. Lab Settles W.Va. Health Care Fraud Case
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.