Alameda Company Pays $1.25M Fed Settlement

ALAMEDA, CA — Laboratory testing services company Singulex of Alameda has agreed to pay $1.25 million to settle a federal Whistleblower Complaint that alleged it submitted false claims to Medicare and TRICARE, according to the U.S. Attorney’s Office in San Francisco. Singulex was accused of pressuring health care providers to select certain diagnosis codes without regard to the patient’s medical condition, or added the codes to laboratory test orders without the health care provider’s knowledge or consent.

The lawsuit also alleged that Singulex pressured health care providers to order lab tests without regard to medical necessity, made misrepresentations to health care providers to convince them to order additional lab tests, or added certain procedure codes to lab test requisition forms without the health care provider’s knowledge or consent.

"This settlement reflects the continuing commitment of the U.S. Attorney’s Office and our law enforcement partners to identify and prosecute improper Medicare and TRICARE billings by companies that are looking to increase their profits at the expense of taxpayers and without regard to proper patient care,” said U.S. Attorney Alex G. Tse.

“Health care companies that use illegal shortcuts to boost profits undermine the financial integrity of federal health care programs,” said Special Agent in Charge Steven J. Ryan of the Health and Human Services’ Office of Inspector General (HHS-OIG). “Our agency will continue to hold those who engage in such fraudulent schemes accountable.”

“Today's result resolves serious allegations of fraud against Singulex and is a victory for the U.S. taxpayer,” said Special Agent in Charge Chris D. Hendrickson. “DCIS and its law enforcement partners will aggressively pursue those who attempt to defraud the U.S. military's health care program and other health care programs in order to ensure the health care system works for U.S. military personnel and their families.”

The lawsuit was filed by Vicki Swartzell and Jim Vandermeer under the qui tam provisions of the False Claims Act. Under the act, private individuals can bring a lawsuit on behalf of the government for false claims. The individual then shares in any recovery. The act also permits the United States to intervene in and take over a whistleblower suit, as it has done here.

This case was investigated by the U.S. Attorney’s Office of the Northern District of California, HHS-OIG, DCIS and the FBI.

-Image via Shutterstock

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