News-At-A-Glance: Virginia Whistleblower Suit Against Quest Diagnostics Enters New Phase:

In a motion to dismiss the whistleblower suit filed against it in Virginia, Quest Diagnostics argued that there is no statutory or regulatory provision requiring it to charge Medicaid its lowest fees and therefore the relator has failed to state a claim in sufficient detail. Quest says the Virginia Fraud Against Taxpayers Act (VFATA) and applicable regulations require laboratories to charge Medicaid the same price it charges the public. Quest says that is the list price it charges cash-paying customers. In a previous case a consulting company won a similar case under federal and New York false claims acts. In United States ex rel. Associates Against Outlier Fraud v. Huron Consulting Group, Inc., the court ruled that the relator, “could not assert that Huron caused the submission of false charges because there was no rule, regulation or standard governing how hospitals should set their charges and how those charges must be related to hospital costs.” Quest also argued that the relator’s claim is based on conduct before Jan. 1, 2003, which is before the effective date of VFATA, which is not retroactive. The trial is scheduled for early 2014.