LOS ANGELES (AP) — The state attorney general’s office says California’s biggest provider of medical lab testing agreed to repay the state $241 million for overcharges to Medi-Cal.

The settlement from Quest Diagnostics is the result of a 2005 lawsuit brought by a whistleblower who alleged Quest systematically overcharged Medi-Cal for more than 15 years.

The suit also claimed Quest gave illegal kickbacks to doctors, hospitals and clinics that referred Medi-Cal patients and charged Medi-Cal up to six times more than other customers for tests.

In a statement, Quest officials acknowledged the settlement but denied all allegations of wrongdoing in the lawsuit.

The whistleblower in the suit was a competitor, Hunter Laboratories.

Medi-Cal is California’s Medicaid program, providing health insurance and services for the poor.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (4)
  1. Suzie says:

    This company tried to take advange of me..

  2. Karma says:

    This is truly a “what comes around, goes around” moment. As a previous employee of Quest, who left by choice, this settlement is fair. Quest probably owes a whole lot more. Its just heartwarming that corporate greed catches up with one offender.

    1. Ron says:

      They better not continue to allow Quest to get any reimbursements from Medi-Cal or Medicaid. Be sure they are taken off any preferred list.

  3. Cougo says:

    They “denied all allegations of wrongdoing in the lawsuit”.
    Yet they thought it was a good idea to pay out $241,000,000 anyway so they wouldn’t be bothered about this anymore.


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