I recently received an email from John Hoevel, a prominent attorney in Chicago, who is thinking about filing a class action lawsuit against LabCorp for over billing patients. It seems that LabCorp is billing the patient’s insurance company and then over-billing the patient more than the patient responsibility portion of the insurance (or as they call it in the insurance world, more than the co-payment). The bottom line is that if LabCorp is billing patients more than they are allowed, Hoevel & Associates wants to stop them.
He would like to hear from you if:
1. Your insurance company processed a claim for LabCorp services, and
2. LabCorp or LCA Collections billed you for a balance higher than the patient responsibility amount shown on your insurance company’s Explanation of Benefits (EOB), and
3. You paid the balance, or any portion thereof.
You can contact Mr. John Hoevel by emailing him at firstname.lastname@example.org. All emails will be kept confidential and you may have an opportunity to recover some of those over-billings.
If you are a LabCorp employee who knows about this or any other unethical practice by LabCorp, please contact Mr. Hoevel. Your statements can be very useful in stopping unethical actions by LabCorp and you and your job will be fully protected by the law under the Whistleblower Act. You might even get a reward.
Tags: billing, General Labcorp Stories, insurance, labcorp, LabCorp Billing Stories, LabCorp Complaints, labcorp unethical, labcorp whistle blowers, Labcorp Wrongdoings, Labcorp.com Billing, laboratory Corporation of America, lawsuits, LCA Collections
Financial analysts in Wall Street have downgraded LabCorp (LH on the New York Stock Exchange), citing a slow down of testing volume growth and lower prices for their services. The analysts also expect a cut in Medicare payment rates and potentially weaker prices from health insurers. In addition, health care reform could lead to further rate cuts and eliminate the obscene profits that LabCorp makes on some of their niche lab tests.
Will the N1H1 Swine Flu help offset these factors? The answer is a flat out no. LabCorp won’t get much of a boost from a swine flu outbreak because flu testing is only a small part of its business.
Even though LabCorp is buying back their own shares, it may not be enough to maintain the share prices at their current levels. Laboratory Corp. of America announced that they will buy back up to $250 million of common stock under a repurchase plan approved by its directors. LabCorp purchased a total of $500 million worth of shares under its previous stock buy-back plan. About $95 million of those repurchases have taken place since the end of June.
With employee dissatisfaction, pending lawsuits and ongoing management problems, it looks like shares of Laboratory Corporation of America are heading down quickly. Some of the company’s insiders sold the shares ahead of the downgrades.
On 09/08/09 LANE WENDY E, a Director, sold 4,116 shares for $68.70 a share.
On 09/02/09 LANE WENDY E, sold 2,604 shares at $68.78 a share.
On 08/17/09 HARDISON DONALD M, the company’s Chief Operating Officer, sold 854 shares at $69.50 per share.
According to Yahoo Finance, during the past 6 months there have been no insider purchases and 5 insider sales. A total of 12,481 shares have been sold by insiders and a net 12,258,100 shares have been sold by institutions, after taking into account purchases by institutions. It seems that some of those who really know what is going on are selling.