Bostwick Laboratories (BL) has settled the federal qui tam (whistleblower) lawsuit filed by Michael Daugherty of LabMD that alleged False Claims Act violations for $6.048 million. This settlement does not resolve allegations against Dr. David Bostwick, who is a separate defendant in the case.
Briefly, Mr. Daugherty alleged BL and Dr. Bostwick (from my previous post):
- Routinely (not on a case by case basis) perform fluorescent in-situ hybridization (FISH) testing on atypical urine cytology cases regardless of whether the referring clinician requested FISH testing and then bills the government for the tests; and
- Perform other tests of dubious necessity without a physician order and also bills those to government payors; and
- Perform both the professional and technical components of FISH testing, but allow the referring physicians to bill for the professional component; and
- Charge referring physicians a reduced amount for the FISH technical component, which allows the referring physicians to mark up and bill Medicare for the full amount, and pocket the difference.