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February 25, 2022

Diagnostic Testing Company to Pay Over $140,000 to Resolve False Claims Allegations

On February 18, the DOJ announced that American Health Associates, Inc. (AHA) agreed to pay $142,718 to resolve allegations of False Claims Act violations. The government alleged that AHA knowingly submitted false claims to Medicare for diagnostic tests performed by MedLab, a lab AHA acquired in 2014. Between 2015 and 2019, AHA allegedly caused MedLab to submit bills to federal payors for diagnostic laboratory tests that were performed and already billed as part of inpatient admissions at Access Hospital Dayton, a psychiatric hospital. This settlement follows an earlier settlement with Access Hospital Dayton and its owner, who collectively agreed to pay $425,000 to resolve false claims allegations related to unnecessary diagnostic testing. In total, the government will recover approximately $517,498. There was no determination of liability with either settlement.