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 they will not be able to participate 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 have to drop 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.

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.

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 lab@hoevellaw.com. 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.

Making a lab error on a blood test can have a serious impact on a life. I don’t know if LabCorp employees don’t care, or if they are simply numb to the impact of their lab errors because they rapidly run through so many blood tests. This is part of their “quantity is more important than quality” problem.

I received this email from Natasha today. I don’t know what I would do if this LabCorp lab error occurred during a blood test on my child. It is devastating news that no one should have to endure as a result of a lab error.

Angelman Syndrome - Click for Large Image

LabCorp diagnosed my son with a rare genetic disorder called Angelman Syndrome by a Methylation blood work test. This syndrome is characterized with mental retardation, lack of speech, and seizures just to name a few symptoms. Our family was devastated, and we grieved for months.

When he got in to see a neurologist, he ordered another test to get more information about which type of the syndrome he may have. This test came back negative. We were shocked, but tried not to get our hopes up too high because we did not know which test was accurate. When we finally got in to see the geneticist, he ordered another round of genetic testing, this time a more detailed test called a cgh, as well as the original test. All negative.

LabCorp told the genetic counselor that they think they switched his blood. For privacy reasons they wont tell us anything, but assured her that they would try and find the child who really has this condition. As relieved as we were to have the good news, we are so angry for this mix up happening in the first place. Months and months of our lives were taken from us, and I still have not received one phone call from Lab Corp. We are unsure how to proceed from here. Anyway, this is an EXTREMELY abbreviated version of the story. Please let me know if you would like more information, I will do anything to help, no family should go through what we experienced.

My recommendation to Natasha is that she find a lawyer and sue LabCorp for punitive damages. A blood test lab error of this magnitude should be sufficient grounds for a lawsuit. One that I am sure LabCorp would settle quickly before the news quickly spreads and their testing service loses even more credibility.

The days between getting LabCorp’s lab results and finding out about LabCorp’s error were probably Natasha’s worst days of her life. No health services provider has the right to do  this to anyone. It’s obvious that Laboratory Corporation of America understands money, so they should pay for their mistake. In addition, government regulators should step in so that this never happens again.

This is an email that I received from Debbie. She sounds like a wonderful mother who feels for her son who will unfortunately have to give blood again. Just as bad is that LabCorp is attempting to charge her for their own mistake.

Just frustrated that I received a call from my pediatrician who told me that Lab Corp ran the wrong blood test on my three year old.

 Unfortunately, they had to stick him twice to get a good vein. All the trauma and crying was for nothing, as they didn’t follow the doctors orders for the test. Now, I have to phone them and argue about payment. We have a very high deductible since we are self employed, and I believe we should not have to pay for a test that was not needed. Wish me luck.

Here’s a recent story from the Winston-Salem News. LabCorp’s clear violation of the HIPAA laws is of grave concern. Under the Health Insurance Portability and Accountability Act, releasing medical information to someone that has not been authorized to receive it is punishable by up to $10,000 per incident and prison time. The only problem is that out of tens of thousands of complaints filed, the government has fined just a handful. Well here’s the LabCorp HIPAA violation, which is probably happening on a daily basis.

WINSTON-SALEM, N.C. — April 11, 2009, A Triad medical company said it mistakenly faxed almost a dozen pages of personal patient information to the wrong number.The lab test results were sent from LabCorp, and were meant to go to Winston-Salem Health Care. Instead, they went to Leigh Ambruso’s home insurance office.

“I don’t know how to read test results,” she said. “I know enough to know I wasn’t supposed to have this information.”

For six days LabCorp sent information from about 12 patients to Ambruso’s fax machine. Originally, she said, she didn’t think anything of it. “I just want people to know this is happening,” she said.

But the faxes kept coming. Ambruso said she explained the error to someone at Winston-Salem Health Care who was supposed to get the information. “She said, ‘Do me a favor and fax them to me,’” Ambruso said.

She said she finally had enough and realized the fax was violating the Health Insurance Portability and Accountability Act (HIPAA). “I said, ‘If you send me one more fax, I’m going to call the patient and tell them I have their personal information,’” Ambruso said.

One of the patients….William Dull said he was anxiously waiting on results to determine if his cancer remained in remission. “It’s very upsetting,” Dull said. “It’s not being handled like it should be.”

No one at LabCorp would talk on camera. The company eventually responded.

“The fax number has been corrected in our computing systems to prevent similar incidents in the future,” the company said in a statement.

A Winston-Salem Health Care representative said that the company takes the security and confidentiality of patient information very seriously. “We appreciate the caller’s efforts to bring this situation to LabCorp’s attention so that it could be addressed,” a company representative said. Winston-Salem Health Care said it is still investigating the mix-up.

I received this complaint that was also submitted to Labcorp through the patient feedback section of their web site. Complaints like this one should be immediately followed up by LabCorp managers. Whether they are followed up or not, now that’s a different story. LabCorp’s regional managers tend to find secondary excuses for the complaints. In other words, they find ways to blame the patient instead of the LabCorp employees who are poorly trained or worst yet, poorly supervised. That seems to be the universal problem in almost all LabCorp regions.

I recommended to Nancy that she contact United Health Care and notify them about the incident with her child. Hopefully that will persuade United Health Care to select better quality lab service providers. Here’s Nancy’s complaint:

I had to take my 11 year son to Labcorp yesterday in Deland Florida and we had a HORRIBLE EXPERIENCE. First the tech gave him something to squeeze, tied off one arm, poked and prodded with her finger, untied it, tied off the other arm and did the same. Took the tourniquet off and called in a co-worker to “hold his arm, he wasn’t co-operating.” I said to her, “He’s holding perfecting still, what do you mean he’s not cooperating?” She said “He’s not squeezing hard enough”. She then stuck him with the needle, nothing came into the vacutainer tube, she then proceeded to stick it in DEEPER and wiggle it around……I told her take it out, she had one shot, and by this time he was crying and I hadn’t seen him cry in years….She then says, “Well do you see how thick his arms are for a kid?” “Go take him to the hospital” and as she took the tourniquet and supplies away I saw that it was a glass blood tube that she was having him squeeze…he was afraid he’d break it……I still have to get his blood work done but I’m checking other labs for cost because my United Health care pays for Labcorp only and I’d rather pay out of pocket than go to Labcorp again. I was going to go to another site but after reading all the complaints online it seems they are all as equally unprofessional, rude and inadequately trained.

Here’s the email I sent her:

Nancy:

I posted your incident on the labcorpsucks.com website, and withheld your name. How sad that they would do that to a child. I highly recommend that you contact United Health Care and let them know of how your son was treated. They might even authorize you to go to another lab or have the blood drawn at a doctor’s office. Having unqualified or poorly trained personnel at a lab service center is the fault of management. I have noticed that there are many complaints about management in your region. Please feel free to refer United Health Care supervisors to see how many complaints are posted on labcorpsucks.com. Hopefully that will move them to stop using LabCorp and select a lab services provider that will provide higher quality health care services for their insured. I will also forward your incident to Florida’s AHCA (Agency for Health Care Administration). I highly recommend that you call Florida’s AHCA and file a complaint with them as well. Here’s the info on how to file a complaint in Florida:

Consumer Complaint, Publication and Information Call Center

The agency provides a toll-free telephone system for consumers to call in order to file complaints, receive publications, information and referral numbers. This system can be accessed by calling the number below between the hours of 8:00 A.M. and 6:00 P.M. Eastern Time Monday through Friday. Complaints about health care facilities are taken during regular business hours, 8:00 A.M. to 5:00 P.M., Eastern Standard Time (EST).

(888) 419-3456

For registering your complaints, requesting publications or requesting information, use the following options:

Press Option 1

Available Monday – Friday, 8:00 A.M. to 5:00 P.M., EST. To file a complaint about a health care facility. The call center can also refer you for information on facilities.

Good luck.