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. 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.

I received a very disturbing email from a lady who was sent to LabCorp for a urine test. This is a fairly simple process regulated by federal guidelines as it can cause the loss of employment if not properly administered. In this case it never got to that point. She complains that after sitting in the waiting room for over one and a half hours, she was asked to leave without being able to provide her urine sample.

Customer service is an important part of every business. When you have a customer waiting inside a facility and he or she has been in a facility for an extended period of time, it is common courtesy to provide the service before closing. In this case, they just chased all the customers out. It is without a doubt one of the worst violations of customer service principles that I have seen. I’m fairly confident that even poorly trained LabCorp managers would object to the actions of their employees in this case. If they do something about it, now that’s a different story. Here’s the email I received:

I was sent there (Labcorp) by an employer for a urine test. I sat there for over 1 1/2 hours (well before 4p.m). The woman came out and announces “all of you here for “P-Test” have to return on Monday, we are not doing anymore today.” I told her look,I have to have this done today in order to start work…her reply was that’s not our problem….WTF…

I have all of my certifications for phlebotomy ……Those employees are rude,hateful and just out right nasty. They are the laziest people I have ever seen.

Thanks,

F.Kim

I work at one of LabCorp’s many billing departments around the country. The place sucks. The department, the company, the manager, and supervisors. I come in every day and my co-workers are like robots in a factory.

 

The job is fast paced and I’m not surprised about the billing complaints because, yes we do make mistakes in billing. Why? Because we’re told to do it at a super speed/superman rate which causes many of us to miss other vital information. If we don’t meet their numbers, we get called in and get “talked to” about our poor performance. The job really is simple to do if you’re allowed to do to it the way humans should. It’s the company and superiors that make the work atrocious.

 

Here’s a typical day for the billing people: come in, work, work, work, get bitched at by superior for talking/laughing with co-workers/having emotion/acting human/not performing to LabCorp’s standards, work, work, work, get bitched at some more, work, then the day’s over.  Actually, that’s the setting in other departments in the company. I’ve talked to others, not one of them have anything nice to say about the company or their superiors.  We’re not supposed to have any type of human emotion or try to enjoy our work environment, apparently. Yet the ones trying to impose the rules are don’t even follow it. 

 

My superiors aren’t doing crap and chat with one another for most of the day and the fingers get pointed at us on the floor when corporate isn’t happy with our performance. When I say we’re like robots, it ‘s true. That’s what they want us to be. Think of a sweatshop setting.  When they’re not happy, they create dumber rules and added stress.

 

If you absolutely need money, then apply here. Otherwise, this should be your last resort. It COULD be a good company to work for, but they need people who don’t have sticks up their asses and actually know what they’re doing and can treat and respect people who are below them.

Your blood test results belong to you under federal law. I received an email from Mike about his daughter and their problems with getting copies of blood test results from LabCorp. You can read it below.

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.

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.

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
Room 939
Jacksonville, Florida 32202

or call:

(904) 351-0551

SUBJECT: LABCORP CONDUCT IN FLORIDA.

 All correspondence is confidential. 

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.

Carolyn

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. 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.

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.