Urine drug testing lab resolves allegations over violating False Claims Act: DOJ

CHARLOTTE, N.C. (QUEEN CITY NEWS) — According to the Department of Justice, a Virginia-based urine drug testing laboratory and its owner have resolved allegations that they knowingly billed North Carolina Medicaid for urine drug tests that were medically unnecessary.

The United States and the State of North Carolina alleged that from September 28, 2016, to December 20, 2017, LabXperior submitted false claims to Medicaid for urine drug tests. They say the claims were false because they were the result of an illegal kickback arrangement between LabXperior and BPolloni Consulting, LLC, which referred tests to LabXperior.

LabXperior paid BPollini a percentage of the profit from the Medicaid reimbursement for reach drug test that BPollini arranged for another entity, Do It 4 the Hood Corporation (D4H), to send to LabXperior.

The CEO of BPollini and other individuals who operated D4H pled guilty to conspiracy to commit health care fraud and Anti-Kickback Statute violations from D4H’s illegal kickback arrangements.

In addition to the illegal kickbacks, the U.S. and the State of N.C. alleged that claims for drug tests that LabXperior submitted to Medicaid were false because they were medically unnecessary. The orders for the tests were not patient-specific and did not reflect a patient’s need for testing.

LabXperior and its owner, Tina Ball have paid $235,000 for allegations that they violated the Federal False Claims Act and North Carolina False Claims Act.

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