A lawsuit was filed on behalf of the Federal government that claims LabCorp operated a “pull-through” scheme to force doctors covered by insurers to use LabCorp for all medical testing. The suit claims LabCorp (NYSE: LH) offered illegal discounts to doctors in exchange for referring all their patients who need laboratory testing to the company.  According to federal anti-kickback laws, it’s illegal for health care companies to directly or indirectly compensate other parties to encourage them to order any service paid for by the federal health care programs.

Under federal law, companies can’t charge or participate in the Medicare or Medicaid program if they violate federal laws. The suit claims LabCorp charged Medicaid and Medicare more than $1 billion, which is about 20% of the companies total income. If LabCorp is found guilty they will not be allowed to conduct lab tests on anyone covered by Medicaid and Medicare, which is a large portion of LabCorps testing income.

On other news, LabCorp secured a new credit line of $1 billion. What a coincidence.

LabCorp is being sued for allegedly violating the civil rights of an employee who complained about a supervisor’s racial remarks.

James Litomisky filed suit against Laboratory Corp. of America on June 27 in federal court of New Orleans. In the lawsuit, Litomisky argues he was terminated from his employment with LabCorp in retaliation for his objecting to, opposing, and refusing to cooperate with LabCorp’s discrimination against its employees with respect to the terms and conditions of their employment on the basis of their race.

Specifically, Litomisky alleges his supervisor made racist remarks regarding African American LabCorp employees. He objected to this language and complained to the human resource department. He was told the employees who were the butt of the racial comments must file complaints in writing on the proper forms for any action to be taken.

Less than a month later, he was placed on a performance improvement plan, allegedly in retaliation for his complaints about the discriminatory behavior. Litomisky also argues that his supervisor directed him to falsify quarterly performance management reviews of two African-American employees so that his supervisor could terminate them. Initially, he complied with the directive, but the next day he informed human resources of the incident and corrected the reviews. He was terminated from his position in October 2010, the lawsuit says.

The defendant is accused of violating the Louisiana Human Rights Act and the Louisiana Whistleblower Act. The plaintiff is seeking damages for back pay, reinstatement or in lieu of reinstatement, front pay, compensatory damages including medical expenses, pecuniary damages, damages for emotional distress, lost wages and benefits, punitive damages and attorney’s fees.

When PSA levels are elevated it’s important for the doctor to find out why. The levels could be high for many reasons, from a bacterial infection to a tumor or cancer in the prostate. So when a standard blood test at my cardiologist showed high PSA levels I got concerned. The first thing I noticed is that even though the blood was drawn in my doctor’s office, it was sent to Lab Corp to be analyzed. It’s the only lab he uses so I had no choice but to use LabCorp. He immediately told me to go see a Urologist.

There’s only one Urologist that I felt comfortable with, Dr. Bejany in the University of Miami Clinic building. He is not only a friend, but one of the best Urologists in Miami, Florida.

Within a few days I was in his office with the original LabCorp test results showing elevated PSA levels. While he reviewed the results I told him that the test could have been faulty and that I am not confident in the results because it was performed by LabCorp. He said that it’s possible so he had his staff draw blood for another PSA test. I immediately noticed that his office also uses Laboratory Corporation of America for PSA tests.

The doctor wanted to rule out bacterial infections so he had me fill a cup with urine. That was also marked to be sent to LabCorp. I was then moved into an exam room where he performed a digital exam. After the physical exam he requested that I do a second urine test. From the time of the first test to the second one I had ample time to drink plenty of water. I once again filled another cup of urine and after I gave it to his nurse, she marked that one for LabCorp as well. So far so good as the tests went.

After a week I called the doctors office to see what the test results showed. The nurse on the phone was baffled and kept me on hold for a few minutes. She searched all her files but was unable to provide results. She explained that the person in the office who handled the test was out for the day and that she couldn’t find any of my results. She requested that I call the next day when she’s in the office. That was yesterday.

Today I eagerly called to get the results. As anyone with the possibility of having a life-altering disease can tell you, every day without results feels like a month. The receptionist on the phone checked my file and put me on hold. I was on hold for a few minutes when she returned and said that she was checking with someone else in the office about my results. After being on hold for another 4 minutes she answered that she was still looking for the PSA test results and once again put me on hold. Knowing the efficiency of this doctor I started to get concerned about what the results showed.

A few minutes went by and the doctor picked up the phone. He told me that the PSA blood test showed my PSA levels dropping since the first PSA test, but they were still above medically acceptable levels. I asked about the possibility of a bacterial infection versus a tumor or cancer and his response was something I was concerned about, the urine tests inexplicably showed no results. It had to happen to me AGAIN, LabCorp screwed up. LabCorp either lost or failed to process both of my urine samples.

Could it be that they intentionally threw out the samples because they know I’m the author of LabCorpSucks.com? That would take too much thinking on their part. From the way they run their operation, it would be giving them too much undeserved credit. Could it be that they just outright SUCK. That makes more sense to me. They not only lost one, but two urine samples. Talk about incompetence.

The doctor decided that it didn’t make sense to have me come in again for another urine test and wait another week. He prescribed antibiotics just in case a bacteria was causing the increased PSA levels. I was then requested to come in next month for another PSA blood test to see if the antibiotics resolved the problem. He was clearly frustrated at the LabCorp PSA test results, or should I say lack thereof. I wasn’t as I know that LabCorp sucks!

Feel free to post this complaint about Labcorp on your website:

My daughter had blood work done that was ordered by her doctor in the summer of 2009.  Early 2010, she has been referred to a specialist who wanted all of her previous records including blood test results.  I didn’t have any problem obtaining results from all other tests performed by the hospital.  The doctor that originally ordered the blood tests has retired and left a contact for medical records requests.  I didn’t have any success with the referred place so I contacted LabCorp directly and they told me that by law, they could not give me or my daughter the lab results.  They told me that only the doctor that ordered the tests could access the results.

I paid for these tests in full.  These are my records, not the doctors.  I walked right in the hospital and got all the other results with no problems.  The hospital told me that there is no law preventing a person from obtaining their own medical records.  I will never voluntarily use LabCorp again.  I recommend that if your doctor takes blood for tests, ask them what lab they use.  If they use LabCorp, ask them if there is another option.  If they write a prescription for tests, take prescription to your local hospital to get the lab work done.  Be sure to check to see if the hospital is on your insurance’s network.

Mike F from Amarillo, TX

If you’ve had blood tests and the results are available, you can request a copy of the results. All you have to do is ask for it. It’s your right to get copies of the blood test results from the doctor, LabCorp or medical facility who administered the blood test. The federal law that allows you to ask for and receive copies of your health records is the Health Insurance Portability and Accountability Act, also known as HIPAA. After you request copies of your blood test results, the law states that the medical facility has 30 days to give them to you. Labs may ask you to sign a permission form before releasing them but as I understand HIPAA, they have to provide it to you.

In Mike’s daughter’s case, LabCorp failed to provide the records and claimed that the law prohibited them from providing copies of the lab test results. If anyone knows what law they are referring to, please let us know by posting a comment to this post. I spoke to various lawyers about this issue and they all told me the same thing, “Your lab test results are medical records that belong to you under HIPAA.” There are laws that require medical consultation in reference to certain test results but in Mike’s daughter’s case, the results requested were old records that had already been provided to the doctor. A word of advise to Mike is that you contact the Medical Board in your state about the custodian of the records for your retired doctor. They will make sure that you get the records that the doctor turned over to them. You should also tell them about  LabCorp’s refusal to provide you the records. I’m sure that there is a state licensing agency that wants to know all about it.

 Other factors influencing the recommendation were weather, intensifying competition and possible pricing pressures from public payors. The analysts reported that “Downside risks: competition, Medicare / Medicaid / VA cuts, weak demand. Upside risks: accretive M&A and share buyback, higher volume growth.”

The United States Department of Labor is investigating Labcorp for not being in compliance with their affirmative action plan and for discriminating against certain sectors of the population. In a recent letter received by LabCorp Sucks from a former employee, the U.S. Department of Labor, Employment Standards Administration’s Office of Federal Contract Compliance Programs requested that their Jacksonville, Florida office consider the allegations made by the former employee when conducting future compliance evaluations of Laboratory Corporation of America

If Laboratory Corporation of America (LabCorp) is found to not be in compliance and fails to correct the problems, they can be sanctioned and could even be restricted from participating in the Medicaid and Medicare program, two major income sources for the Laboratory company. LabCorp can also be prohibited from participating in other government programs, including the CHAMPUS program (The Civilian Health and Medical Program of the Uniformed Services) that provides laboratory services to government employees, and to Veterans Administration program beneficiaries. LabCorp currently contracts with all these government programs to provide reference laboratory services to program participants. Since many HMOs that serve the beneficiaries of these federal programs also contract with LabCorp, the HMOs would also be restricted from using LabCorp. The loss in business could be in the hundreds of millions and could be catastrophic to LabCorp stock (NYSE: LH).

LabCorp’s discrimination problems have been well known to company insiders. The company has various lawsuits pending and has had to settle others by paying out millions. In a recent Florida case, LabCorp even had to fire the law firm representing them after accusations of obstruction of justice by the firm.

LabCorp’s total revenues for the fourth quarter rose to $1.17 billion, up from $1.12 billion the year before. For the full year, the company had profits of $543.3 million, up from earnings of $464.5 million in 2008. The increase also includes all the income from the labs that Labcorp has acquired.

Labcorp also announced that it will be spending $250 Million to buy back shares of their own stock. Labcorp’s Chairman and CEO David King said “ We remain optimistic about the growth opportunities that lie ahead for us in 2010, and we are well positioned to capitalize on them.”  I highlight the word lie because while he was making the statement, he was filing with the Securities and Exchange Commission that he had just sold shares of LabCorp stock and pocketed over $171,960 in profits. You would think that when the head of a company announces positive results and claims to be “optimistic about the growth opportunities” he would be buying stock, not selling it. But then he owns lots of LabCorp stock and could have sold for other reasons.

One thing that LabCorp CEO David P. King didn’t boast about is that of a rumored investigation of LabCorp by the US Department of Labor, Employment Standards Administration, Office of Federal Contract Compliance Program. According to posts in CafePharma.com, LabCorp’s Florida operations are in trouble. They had to settle an employment lawsuit at a rumored cost of about $2.7 Million. In addition, they have a pending Federal lawsuit from a former employee that has not gone too well for them. With allegations of witness tampering and obstruction of justice, LabCorp has had to fire the law firm that was handling the case. The posts include the following:

OFCCP would like to hear from those who have been discriminated against based on a protected characteristic. (personal info removed) A formal recommendation has been made for an investigation of LCA Florida. Those who aren’t afraid to get their hands dirty, write:

US Department of Labor
Employment Standards Administration
Office of Federal Contract Compliance Program
Charles E Bennett Federal Building
400 West Bay Street
Room 939
Jacksonville, Florida 32202

or call:

(904) 351-0551

SUBJECT: LABCORP CONDUCT IN FLORIDA.

 All correspondence is confidential. 

I went to LabCorp in Arlington VA last Saturday am in the middle of a snowstorm that was getting worse by the minute. All I had to do was drop off a specimen, and I informed them of that the minute I walked in. After two more interruptions by me asking why I couldn’t just drop it off, they finally took it from me – an hour after I walked in the door. So, I sat for an hour in a waiting room filled with sick people (and I am not sick), while 8 inches of snow was falling and the roads getting worse by the minute, and they couldn’t be bothered to take a plastic bag of test tubes from me. They weren’t even apologetic. I think I would have been there another hour if I hadn’t finally thrown a huge FIT at the desk.

I wrote an email complaining to them about this, but you know they won’t even respond to it. They are a terrible company.

Here’s what Joan had to say:

Labcorp original blood work returned a positive result for HTLV, Human T-Cell Leukemia Virus.  If you can imagine, I was devastated.  The last two weeks have been awful. This virus is much like HIV;  it’s sexually transmitted, and transmitted through needle sharing and blood transfusions. My doctor also communicated there was no cure. 

I could not imagine where I would have contracted such a disease, but I have been feeling weak and tired, and assumed it was true.   My family and I have been devastated.

My doctor does not trust Labcorp, but since Labcorp is the only approved lab with United Health Care, (shame on United Health Care) he ordered a second test.  In the meantime, he has sent me to numerous other MRI appointments and the like looking for tumors, all at the cost of my insurance company.  Last night, I got the results and the second test was negative for HTLV.  I am grateful that I don’t have HTLV, [if I can trust their second test]; but I wonder if there is someone else out there who does… and does not know. I question Labcorp’s  laboratory process and wonder if they got the blood mixed up. Is it possible that there is a person out there who is positive for HTLV and is unknowingly spreading this death sentence virus to others?  Labcorp is incompetent.

I agree with you… Labcorp sucks!

Joan

New York, NY

Here’s information about this dreadful disease and how devastating it is. Human T-lymphotropic virus type 1 (HTLV-I) causes adult T-cell leukemia in about 2.5% of those persons infected with the virus. The time between acquiring the infection with HTLV-1 and developing disease is thought to be 30-50 years. HTLV-1 also can cause a neurological disease called HTLV-1-associated myelopathy/tropical spastic paraparesis in about 5% of those infected. This is an illness that affects the spinal cord and white matter of the central nervous system. Manifestations include difficulty walking and weakness and stiffness of the lower extremities more than the upper extremities. Bowel and bladder control may be lost. A number of other disorders have been associated with HTLV-1 including inflammation of the joints or eyes. HTLV-I is endemic in Japan, the Caribbean, New Guinea and parts of Central Africa. Prevalence is highest in southwest Japan. It is not common in the United States.

Human T-lymphotropic virus type 2 (HTLV-II) may cause neurodegenerative disease such as myelopathy, and it may be associated with hematological malignancies but the association between the virus and these diseases is weak. The virus is endemic in Native Americans in South, Central, and North America.

Enzyme immunoassay screening of serum, with confirmation by type specific western blot, immunofluorescent assay or polymerase chain reaction can be used to determine carrier status and help in confirmation of either HTLV-I or HTLV-II disease. Specific pathological conditions must be present for disease diagnosis.

Well that was last month. Just a few days ago Labcorp went to the state and local governments in North Carolina for a handout of taxpayer money.  LabCorp wants to consolidate its billing operations and if it selects Greensboro as the location of the new facility, it would receive nearly $900,000 in taxpayer money. That’s free money from the taxpayers that will never be repaid.