Chester laboratory settles $758K over alleged doctor kickbacks for lab referrals: DOJ

CHESTERFIELD COUNTY, Va. (WRIC) -- A Chester laboratory has agreed to pay $758,000 to settle allegations of illegal kickbacks to doctors and marketers, according to the Department of Justice (DOJ).

The clinical laboratory NEXT Bio-Research Services LLC, doing business as NEXT of Chester, allegedly paid kickbacks to induce laboratory testing referrals, paid knowingly and willfully, per the DOJ.

NEXT allegedly paid doctors in Texas and Arkansas thousands of dollars in kickbacks disguised as consulting fees and medical director fees. However, in reality, the department said these payments were actually offered to induce the doctors to order NEXT laboratory tests.

The company also allegedly paid commissions to certain independent contractor marketers based on the volume and value of referrals to ensure that doctors order NEXT laboratory tests.

The anti-kickback statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs, per the DOJ. This law aims to ensure that medical providers' judgments are in their patients' best interests.

“This settlement shows DOJ’s commitment to rooting out illegal kickback schemes that have no place in our federal health care programs,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department is committed to pursuing these important investigations and health care fraud enforcement across the board.”

NEXT has agreed to pay $758,000 and may owe additional amounts if certain financial contingencies occur, resolving allegations that NEXT billed Medicare, Medicaid and TRICARE for the tests despite knowing about these kickbacks.