Magnolia Diagnostics, a Dallas-based clinical laboratory, and its owners, John Bains and Kelly Bains, have agreed to pay $19.2 million to resolve allegations of violating the False Claims Act by billing Medicare for unnecessary respiratory pathogen panel tests on seniors. Investors will pay an additional $4.8 million to address claims of unjust enrichment and payment by mistake. The U.S. Department of Justice, U.S. Attorney’s Office, and Health and Human Services’ Office of Inspector General investigated the case. Allegations include using prepopulated forms to mandate expensive tests without individualized clinical assessments, submitting false claims for thousands of tests between April 2020 and September 2021, and storing specimens to generate delayed results. The settlement reflects coordinated efforts to combat healthcare fraud, with the DOJ emphasizing accountability for exploiting taxpayer-funded programs. The claims are allegations only, and no liability has been determined.
Source: U.S. Department of Justice (DOJ).
Materials reproduced from https://www.justice.gov/.
No endorsement by the DOJ is implied.
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