Lab to Pay $4.7M to Resolve Medicare, W.Va. Medicaid Fraudulent Billing Charges

Calloway Laboratories will pay nearly $4.7 million to settle allegations that it fraudulently billed West Virginia Medicaid and the federal Medicare program.

Booth Goodwin, U.S. attorney for the Southern District of West Virginia, announced the settlement May 21 in a statement, calling it “the largest-ever recovery in a health care fraud case” for his office.

The laboratory, based in Woburn, Mass., provided clinical laboratory services, including urine testing, for Medicare and West Virginia Medicaid, Goodwin said. But from March 2009 through April 2013, it routinely billed both using a code designated for pathology services, in addition to the code for ...