California Case Shows Why Paying Specimen Collection Fees of Any Amount Are a Liability Risk
Paying physicians fees to collect and process patient samples for testing is a dicey proposition because it exposes labs to suspicion under the Stark and Anti-Kickback Statute laws. Such arrangements are particularly problematic when the fee recipient is a family member of the referring physician. In case any of you needed a reminder of these facts, consider this recent case from California. Whistleblower Sues Over “Sham” Fees The case began when a whistleblower filed a False Claims Act suit charging a California lab of entering into “sham phlebotomy contracts” paying kickbacks to physicians’ family members and staff in the form of process, handling and collection fees at above market rates. The lab acknowledged that the $15 per blood sample draw fees were significantly higher than the Medicare rate of $3, but contended the payments were legitimate because: They covered a “panoply” of services that including apportioning the blood in vials, spinning the vials in a centrifuge, packaging and labeling the vials and arranging for shipment; and The $15 payment is made to a staff or family member and not to the physician. But the federal court denied the lab’s motion to dismiss the case. Ruling The lab claimed that […]
- They covered a “panoply” of services that including apportioning the blood in vials, spinning the vials in a centrifuge, packaging and labeling the vials and arranging for shipment; and
- The $15 payment is made to a staff or family member and not to the physician. But the federal court denied the lab’s motion to dismiss the case.
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