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Connecticut lab will pay $1.5 million in whistleblower suit

Dianon Systems Inc., a reference lab in Stratford, Connecticut, has agreed to pay $1.5 million to resolve claims under the False Claims Act that the company mischarged Medicare and TRICARE for certain tests it performed.

The suit originated as a qui tam suit filed under the whistleblower provisions of the False Claims Act by a pathologist formerly employed by the company. He will receive $300,000 as his relator’s share.

The complaint alleged that Dianon billed for medically unnecessary tests in that it performed 26 flow cytometry tests on every sample sent to the company for diagnosis regardless of whether all 26 were medically necessary for a particular patient.

The Dept. of Justice press release was issued on October 30, 2007.

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