Physicians Toxicology Laboratory in Tampa has agreed to pay $4.425 million to settle claims it pushed unnecessary drug tests on patients. Physicians Toxicology Laboratory and its former executives were accused of pressuring doctors to overorder urine and hormone tests, which were billed to Medicare despite not being needed for patient care, the U.S. Attorney's Office for the Western District of Michigan announced.
The case, led by U.S. Attorney Mark Totten, involves Physicians Toxicology Laboratory falsely billing Medicare for unnecessary urine drug tests from 2017 to 2019. Totten stated, "Lab tests should be ordered based on each patient’s medical needs and not just to increase laboratory profits.” Physicians Toxicology Laboratory used misleading forms to order unnecessary tests, including hormone tests already covered, violating Medicare rules. Physicians Toxicology Laboratory's former president, Matthew Ryan Lund, and Thomas C. Lund settled without contest and agreed to a three-year Integrity Agreement with Department of Health and Human Services Office of Inspector General for strict oversight and compliance, as reported by the U.S. Attorney's Office.
Mario M. Pinto, Special Agent in Charge at Department of Health and Human Services Office of Inspector General, stated, "but knowingly submitting claims for medically unnecessary services violates that trust and wastes valuable taxpayer dollars." Under a recent settlement, Physicians Toxicology Laboratory must appoint a clinical director, strengthen its compliance program, and hire an outside auditor to ensure claims are valid. Two Michigan practices had previously settled similar allegations, paying $188,633.18, as stated by the U.S. Attorney's Office.
