Precision Toxicology to pay $27 million for unnecessary urine tests, kickbacks

Oct. 2 (UPI) -- California-based Precision Toxicology on Wednesday will pay $27 million to resolve past alleged violations that include ordering unnecessary urine tests connected with federal programs and giving gifts to doctors who referred expensive businesses their way.

Precision Toxicology, which also does business as Precision Diagnostic, was accused of violating the federal False Claims Act and state laws for billing Medicare and Medicaid, along with other federal programs with unusually high numbers of urine tests.

The government alleged that from 2013 to 2022, Precision Toxicology ordered an excessive number of urine drug tests, in part through a promotion. That caused physicians to order a large number of tests "without an individualized assessment of each patient's need."

"The Justice Department is committed to ensuring that laboratory tests are ordered based on each patient's medical needs and not just to increase laboratory profits," Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division, said in a statement.

"We will not tolerate practices that unnecessarily increase the costs of federal health care programs and result in the misuse of taxpayer funds."

Federal prosecutors also accused the laboratory for violating the anti-kickback statute for giving physicians urine drug test cups under the condition that the specimens be returned to Precision for additional testing.

"We aggressively pursue those who defraud these critical healthcare programs and take money meant for needy patients," U.S. Attorney Erek Barron said.