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Louisiana Lab to Pay $42.6 Million Over Genetic Testing Scheme

Oct. 9, 2019, 10:38 PM

A Louisiana-based medical laboratory and its owners will pay $42.6 million to settle whistleblower lawsuits alleging they billed Medicare for unnecessary genetic testing, the Department of Justice said.

The company also agreed to a 25-year exclusion from Medicare and other federal health-care programs, the DOJ said in an Oct. 9 statement.

UTC Laboratories Inc. built its alleged scheme around sham clinical trials that purported to establish registries to study the effectiveness of pharmacogenetic testing, court documents indicate. Pharmacogenetic testing investigates the role an individual’s genes play in the way their bodies metabolize certain drugs.

But the trials weren’t designed to...

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