Radiology Company accused of Health Care Fraud

Diagnostic Labs of Burbank, CA is one of many companies in the last several years to have a False Claims suit filed against them by the federal government. Diagnostic Labs is Southern California’s largest clinical laboratory and radiology company. Diagnostic Labs was turned in by two former employees who allege the company exploited Medicare and Medi-Cal by giving nursing facilities deep discounts for referrals of outpatient testing- then billing Medicare and/or Medi-Cal the maximum allowable amount for services. Another False Claims suit was recently filed against an Ohio Laboratory owned by Audax Group and Frazier Healthcare, which is the same venture Capital firm that owns Diagnostic labs. 

In 2011, 630 whistleblower lawsuits were filed. Two thirds of these suits are for fraud against  government healthcare programs. 2.4 billion dollars in judgements and settlements was collected by the government in 2011. 6.6 billion dollars has been collected over the last three years. The number of similar suits is expected to keep climbing as the government seeks shore up a damaged healthcare system that experiences mounting costs every year.