San Diego-based Precision Diagnostics, one of the country’s largest urine and saliva drug testing labs, agreed to pay $27 million to settle allegations by the U.S. government and multiple states that it billed federal health care programs for unnecessary tests.
“The government’s rules and regulations governing the provision of care are highly complex and frequently ambiguous and, in the areas the government questioned, Precision Diagnostics’ practices, such as the appropriate use of “custom profiles” and point of care testing, actually enhanced patient care and complied with the government’s guidance,” the company statement said.
Part of this settlement includes Precision entering into what’s known as a corporate integrity agreement with the Department of Health and Human Services Office of Inspector General for five years. This means the company will “implement enhanced oversight and rigorous compliance measures to ensure adherence to all regulatory requirements.”