Michigan drug testing company agrees to $73,648 settlement

By Emily Moore | Sep 19, 2014

Physicians Toxicology LLC, a Michigan company, agreed to pay the state of Vermont more than $73,500 after reaching a settlement with Attorney General William H. Sorrell on Thursday for allegedly receiving payments from the Vermont Medicaid program that it was not entitled to.

Physicians Toxicology provides laboratory services to clinicians, including urinalysis drug testing. The civil settlement came after the Medicaid Fraud and Residential Abuse Unit of the Attorney General’s office identified five categories of alleged billing improprieties and errors. Due to the errors, the Vermont Medicaid program allegedly overpaid the company.

Costs to the Medicaid program for urinalysis drug testing have greatly increased over the past several years. The testing is an important tool for clinicians in treating and monitoring drug addiction and chronic pain. To make sure the service remains available and affordable to Medicaid patients, the Vermont attorney general's office is recommending that improper and unnecessary testing be eliminated.

Physicians Toxicology cooperated with the attorney general's office and under the settlement repaid the $73,648 to the Vermont Medicaid program. The company also agreed to take the measures necessary to ensure future compliance with the rules and guidelines Medicaid sets for urinalysis testing.

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