Chester Laboratory Settles Kickback Allegations with DOJ for $758,000
WASHINGTON - NEXT Bio-Research Services LLC, doing business as NEXT of Chester, has agreed to pay $758,000 to resolve allegations it violated the Anti-Kickback Statute by offering illegal payments to doctors and marketers to induce referrals for laboratory testing, the Department of Justice (DOJ) announced today. The settlement resolves claims that NEXT knowingly billed Medicare, Medicaid, and TRICARE for tests ordered as an inevitable result of these alleged kickbacks.
The DOJ alleges that NEXT paid physicians in Texas and arkansas thousands of dollars through disguised “consulting fees” and “medical director fees” specifically to incentivize them to order NEXT laboratory tests. Additionally, the company reportedly paid commissions to self-reliant contractor marketers based on the volume and value of referrals generated, further encouraging doctors to utilize NEXT’s services. Such practices undermine the integrity of federal healthcare programs and possibly compromise patient care.
The Anti-Kickback Statute prohibits offering or receiving any form of remuneration to influence healthcare referrals covered by Medicare,Medicaid,and other federally funded programs. The law is designed to ensure medical decisions are based on patient needs, not financial incentives.
“This settlement shows DOJ’s commitment to rooting out illegal kickback schemes that have no place in our federal health care programs,” saeid Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department is committed to pursuing these notable investigations and health care fraud enforcement across the board.”
NEXT may owe additional amounts beyond the initial $758,000 payment contingent upon certain financial factors, according to the DOJ.
