Diagnostic Labs charged with fraud
Article Thumbnail ImageJune 19, 2012 -- Clinical laboratory and radiology services provider Diagnostic Labs is facing fraud allegations under the False Claims Act, according to a June 18 report in California Watch.
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The Burbank-based company allegedly provided unlawful discounts to skilled nursing facilities in exchange for business that would be reimbursed by Medicare and Medi-Cal.

The report cited court documents in which Diagnostic Labs attorneys described the charges as overblown.

The court complaint also alleged that for the past seven years Diagnostic Labs has offered a 71% discount to skilled nursing facilities for lab tests and a 69% discount for radiology services. The company allegedly made up the difference through fraudulent Medicare and Medi-Cal billing, according to the article.