Andrew Baker, the former CEO of Unilab and current CEO of Huntington Life Sciences, has written an article for The Huffington Post in which he asks the federal government to stop LabCorp and another lab company from continuing to scam the Medicare and Medicaid programs of billions of dollars.
Mr. Baker had previously filed a whistleblower lawsuit against LabCorp in 2007 alleging that LabCorp violated the federal False Claims Act and Anti-Kickback Statutes. Those case is still in court.
In the article he estimates that LabCorp and the other lab have cost taxpayers $15 billion since 1996 in the form of false claims stemming from illegal kickbacks to Aetna, Cigna, United Healthcare and Blue Cross.
The claims are that Labcorp is breaking federal laws by deeply discounting lab fees to private insurance companies, sometimes charging them for laboratory tests even below their costs. In exchange, the insurance companies pressure doctors in their networks to send all of their patients’ lab work, including Medicare and Medicaid patients, to LabCorp.
He claims that Labcorp funds the kickbacks, in the form of lower lab fees for private insurance companies, by charging Medicare and Medicaid patients the highest possible fee instead of offering them the lowest charged price, and by pressuring doctors to send all of their lab work exclusively to Labcorp. Other categories in Medicaid and Medicare require that the government be charged the lowest charged fees by a provider.
Mr. Baker also mentions LabCorp’s $50 million settlement with the state of California for overcharging California’s Medicaid program and for providing kickbacks to physicians for referrals.
As a result of his article, pressure is increasing for government intervention in laboratory pricing for government programs. He advocates for clarification of the intent of current federal law that would require laboratories to charge Medicare and Medicaid their “best price”, just as California has already done. This would require that Laboratory Corporation of America can only charge Medicare and Medicaid the lowest price they charge private insurance companies or HMOs. Which in turn means a massive hit to Labcorp’s bottom line. It would also open up the market to smaller labs which don’t have the multi-tier, lower than cost pricing intended to put them out of business. Such a hit to Labcorp’s financials would tumble their stock (NYSE: LH).
Tags: billing, federal government, Government Investigations, lab, labcorp, Labcorp Criminal, LabCorp Stock, labcorp unethical, labcorp whistle blowers, laboratory Corporation of America, laboratory test, lawsuits, medicaid, medicare, NYSE:LH
LabCorp has been sued and is under Federal investigation for Medicaid and Medicare fraud. In addition, it’s under scrutiny by the U.S. Senate Finance Committee who is investigating Medicare and Medicaid fraud. Laboratory Corporation of America was ordered to hand over its financial records to the U.S. Senate.
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 viagra uk buy. 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.
Tags: billing, federal investigation, Government Investigations, health care, kickback, labcorp, Labcorp Criminal, labcorp unethical, Labcorp Wrongdoings, laboratory Corporation of America, medicaid, medicaid fraud, medicare
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.
Tags: Bad Service Centers, complaints, discriminatory behavior, General Labcorp Stories, labcorp, labcorp centers, LabCorp Complaints, LabCorp Employee Stories, LabCorp Employees, LabCorp Executives, LabCorp Jobs, labcorp unethical, labcorp whistle blowers, Labcorp Wrongdoings, racial comments, racial remarks, whistleblower act
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.
Tags: affirmative action plan, contract compliance programs, employment standards administration, federal contract compliance, lab, labcorp, LabCorp Complaints, Labcorp Criminal, LabCorp Employee Stories, LabCorp Stock, LabCorp Stories, labcorp unethical, labcorp whistle blowers, Labcorp Wrongdoings, laboratory services, medicare program, reference laboratory, u s department of labor, united states department of labor
Laboratory Corporation of America (LabCorp – New York Stock Exchange Symbol LH) recently reported an increase in fourth-quarter net earnings to $142.7 million, as compared to $118.1 million for the 4th quarter of 2008. The increase in earning were due partly to a gain of $21.5 million from resolving state tax issues and realizing foreign tax credits.
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
Jacksonville, Florida 32202
SUBJECT: LABCORP CONDUCT IN FLORIDA.
All correspondence is confidential.
Tags: earnings, employment standards administration, florida operations, Labcorp Criminal, LabCorp Employees, LabCorp Executives, labcorp general, labcorp unethical, Labcorp Wrongdoings, laboratory Corporation of America, lawsuits, LH Stock, NYSE:LH, securities and exchange commission, us department of labor
Here’s a very common complaint. Patient walks into a LabCorp location, has blood drawn, LabCorp loses the blood samples and still bills for the test. This very illegal LabCorp billing practice will eventually backfire. How can LabCorp billing charge for an exam that they did not do? Worse yet, how could they lose the blood samples? Even worse, can it have been tested and another patient receive the results as if their own? It all reminds me of a Looney Toons cartoon I used to watch when I was a little kid. A long floppy eared dog goes running after another animal and stops in its track saying “which way did he go??? Which way did he go???”
Here’s an email that I recently received. It tells the complete story:
Couldn’t believe that there is a whole website devoted to Labcorp screw ups! On November 23rd, 2009, my husband and I both went to Labcorp with physicians work orders in hand. After waiting about an hour, we finally had our respective blood drawn. My husband’s was routine. I am a cancer patient and had two orders, one from my oncologist and the other from my primary care doctor. Even though the facility was very busy and it was a Monday (I should have known better), there was only one phlebotomist on hand. She stated that she was the only one drawing blood there for the past month.
We never heard from our doctor with the results, so on a visit this past weekend, we asked our doctor what the results were. She stated she never received them and proceeded to call Labcorp. She was told they had no record of us going into their facility in November. On a hunch, I called our provider, Humana, on Monday and was told Labcorp had billed them over $500 for my labwork on November 23rd and also had billed them for my husband’s. So, according to labcorp, we never went there on November 23rd, yet they billed Humana over $500!! Meanwhile, we had to have our blood re-drawn yesterday. This time we went to Quest Diagnostics. Maybe we’ll have better luck there. I have filed a complaint with Internal Affairs at Humana and hope to follow up with a letter to labcorp if I can find the proper person to send it to.
Tags: blood samples lost, blood test, blood test lost, complaints, humana, illegal, insurance, labcorp, LabCorp Billing Stories, labcorp general, labcorp locations, LabCorp Stories, labcorp unethical, Labcorp Wrongdoings, Labcorp.com Billing, mistakes
I received this email from Joan in New York who was misdiagnosed as having the HTLV virus by LabCorp. LabCorp mistakes, like this one, cause thousands of dollars in additional tests and devastate the lives of those misdiagnosed. Sadly, LabCorp may have mixed her blood samples with someone elses or could have had a bad reading because of tired, overworked Laboratory technicians. We’ll never know why Laboratory Corporation of America made this mistake, but I can guarantee you that it’s not the first nor will it be the last.
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 otc viagra substitutes. 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!
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.
Tags: insurance, lab, LabCorp Employees, LabCorp Health Care, LabCorp Mistakes, LabCorp Stories, labcorp unethical, Labcorp Wrongdoings, Laboratories, laboratory Corporation of America, mistakes, quest diagnostics, technicians, test results
Just last month, LabCorp reported that they made $131.4 Million dollars in profit for the latest quarter, on revenue of $1.19 Billion. That was a 17% increase in profits as compared to the same quarter last year. Obviously LabCorp stock (NYSE: LH) went up to a new yearly high and all the senior executives high-fived each other.
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.
The Burlington-based company is reportedly considering moving its billing operations from 24 sites across the country to one location in Greensboro or in Danville, Virgina. On Thursday, Guilford County commissioners approved giving the company $248,791 of tax payers money. The city of Greensboro also is offering $373,000. North Carolina would grant Labcorp $275,000 of taxpayer money. That’s a total payoff of $896,791 of taxpayer’s money. The excuse the elected officials are using is North Carolina’s unemployment rate, which is up to 11% and above the national average. This is the ninth straight month the state’s unemployment rate has reached double digits. So what is the government doing handing out free money to a company that just made over $131 Million in the last three months?
So as I see it, a cash strapped state, county and city have decided to payoff LabCorp, a company that made over $131 Million in profits over the last three months, to move their billing operations to their region. It is obvious that LabCorp threatened to move the operation to Virginia in order to get the cash from the taxpayers of North Carolina. I would like to know how many of the elected officials involved in the decision have, or will receive political contributions from LabCorp? Who knows what LabCorp will ask for next? How about adding the following motto to the state’s seal “Property of LabCorp.”
Tags: billing, General Labcorp Stories, Government Investigations, labcorp centers, Labcorp Criminal, LabCorp Executives, LabCorp Jobs, LabCorp Stock, labcorp unethical, Labcorp Wrongdoings, Labcorp.com Billing
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
Many may have already heard about LabCorp’s bold move in denying services to a heart attack patient over an old debt of $7, but I just want to make sure that everyone hears about this incident. Below is the article by Donna Smith, the patient’s wife. She rightfully denounced Laboratory Corporation of America’s practice of disallowing services when “their” computer shows that an old debt was not paid, even if you have insurance and your insurance company may have made an error or did not pay the amount that Laboratory Corporation of America believed was due. Bottom line is that even with insurance, LabCorp will deny services to patients who they believe owe them money from prior services. Here is the note from LabCorp’s front desk that was given to Mr. Smith when he was denied services. You can click on it to get a bigger image.
OK, if this wasn’t personal enough just yet for me, it just got a whole lot more so. And if you think for one instant that in this nation at this point in history and with this popularly elected President and Democratic Congress you will be treated for a heart attack simply because you might die if you are not treated, think again. And if you think having insurance helps, think some more.
On Friday, my husband was denied a blood test because a computer record from some distant time past and some other state showed he had a $7 balance with LabCorp. I am not making this up.
My husband had a heart attack this week. He woke up one morning sweating profusely and with a heart rate dropping. I watched his color turn first ruddy then ashen, and then he felt as though he was going to pass out. He would not allow me to call 911 as he slowly began to feel sick to his stomach and he believed his symptoms were digestive rather than cardiac.
We have learned over the years to wait to seek care – it is expensive to do otherwise and dooms us to the endless loop of bills and collection notices and more damage to our already badly bruised credit rating. So we always wait to seek care until there seems to be no other option. We are not alone. Millions of Americans do the same. We do not want to use the emergency rooms or doctors’ offices. We don’t want anything to do with the whole mess.
We moved to Maryland in March, but have fought Humana insurance and Medicare transfer since then to even make sure my husband can get any care at all. And, by God, we were paying the premiums the whole time the insurance folks hemmed and hawed and stalled. It took three months to get that all straightened out, during which time they repeated over and over, “we’re not denying treatment,” and technically I suppose they weren’t as they want us all just to get out our checkbooks and debit cards and pay up. And in the meantime, my husband waited for any doctors’ appointment and got meds by calling back to Chicago to get prescriptions refilled.
My husband is a cardiac patient and a vascular patient with a complicated medical history and needs follow-up care on a regular basis. He is a responsible guy who has always maintained his insurance coverage and who avoids seeking care unless it is needed. He does not seek to overuse or abuse the system. To stay relatively healthy, he needs regular check-ups and decent intervention when necessary.
But, I insisted my husband follow up in the way we all are told is more sensible and cost effective. He went to a primary care doc on Wednesday who shuffled him off to a cardiologist after a visit barely long enough to be billed as an “extended, new patient visit.” An EKG showed the grim reality. “Abnormal, negative T-waves. Inferior infarct.”
Blood work was ordered in advance of the cardiologist visit set for Friday. He was to fast overnight, see the cardiologist and then get his blood drawn. Seems to be progressing, eh?
Well, only until he sat down in the LabCorp office to get his blood drawn. The LabCorp employee typed in my husband’s Social Security Number, and promptly told him he could not have his blood drawn or have his test administered until he cleared up his old bill with LabCorp. The bill? $7. That’s right — $7.
And my husband has been covered by insurance for many years. But now he sat – post myocardial infarction or heart attack – being told by a laboratory employee that he would be denied care due to an unpaid $7 bill. He did not have $7 with him. He was fasting. He tried to explain. They did not budge. They did call the supervisor. She confirmed and stood her ground for LabCorp. No test for Larry Smith. He owes $7.
David King, the CEO of LabCorp, made $8.2 million in 2008. He’s one of the people and LabCorp is one of the companies President Obama is celebrating who will help transform our nation’s healthcare system. Indeed. And LabCorp’s political participation committee donated funds to several candidates in 2008, including Sen. Max Baucus and Sen. Charles Grassley, both of the Senate Finance Committee that is working on the nation’s healthcare reform.
Lest we think the insurance giants are the only people hurting, harming and killing Americans like my husband as they shore up their profits, follow the money in this story alone. One doctor’s office, another doctor’s office, one insurance company and finally a lab – all worked together to make what they could individually off my husband and then ultimately denied his care for $7. Everybody got their bite of the apple and then left him in the dust as they moved on to the next source of revenue, oops, I mean the next patient.
Where do we stand today? Still no blood work drawn. Waiting for next week to see what we can do to set the tests and exams the cardiologist ordered before she got busy with another patient. Did my husband return to the doctor’s office to tell them what happened and ask for their help? Yes. And he said not one person, not one, would reach into their pockets and give him the $7 or pick up the phone and try to help him resolve this. So what was his life worth? $7.
We’ll get the tests done somehow. But the point is, we’ll have to fight for it. And his heart will be stressed more and so on and so on and so on. This is the travesty of healthcare in this nation. And this Congress and this President are so damned concerned with their own political futures they cannot even see this reality for the rest of us. I am so angry.
And don’t tell me that a single payer – publicly funded and privately delivered system — wouldn’t stop heart attack patients from being denied care due to old debts of $7. It’s the only system that could stop that sort of abuse.
The LabCorp supervisor who denied Larry Smith’s test on Friday, June 26, in Elkridge, Maryland, is named Shirley Smith (no relation to Larry) at LabCorp’s Maryland office: 410-365-1264.
Donna Smith is a substantial supporter of the Democrat Party so in all fairness, LabCorp attorneys and management were also contributors to Barack Obama, Hilary Clinton and many Democrat Senators and Members of the House of Representatives who are working on health care reform legislation. LabCorp is now trying to convince these same elected officials into making laws that benefit the company. According to Huffington Post, 7 identifiable LabCorp employees contributed to Republicans while 14 contributed to Democrats.
Tags: Bad Service Centers, billing, health care reform, insurance, LabCorp Billing Stories, LabCorp Employees, labcorp general, LabCorp Health Care, labcorp unethical, Labcorp.com Billing, laboratory Corporation of America