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Former Lab Owners, Compliance Officer Face Prison Time Over False Claims

Health Law Chair and Health Care Enforcement Defense Co-chair Karen Lovitch spoke with Laboratory Economics offering insight on two recent cases where the former owner of a Missouri healthcare company, Genotec DX, and clinical laboratory, Advanced Geriatric Management LLC (AGM), and a compliance officer face prison time over fraudulent claims. The former owner admitted to submitting more than $3.8 million in false claims to Medicare, Medicaid, and private healthcare benefit programs. 

Karen said, “If Genotec had complied with Medicare’s 70/30 rule, it could have billed testing performed by another laboratory, but it presumably could not have done so given that it did not even have the necessary equipment. It is also not surprising that the authorities detected this fraud given that urine toxicology testing continues to be under heavy government scrutiny.”


Laboratory Economics