Attorney General Ashley Moody's Medicaid Fraud Control Unit has successfully secured over $700,000 from Precision Toxicology, LLC in a multistate legal action. The case involved allegations that the company submitted false claims to federal healthcare programs for unnecessary urine drug testing and engaged in kickback practices.
Moody stated, "Our Medicaid Fraud Control Unit secured more than $700,000 in a multistate action against a toxicology laboratory that submitted false claims to federal healthcare programs for drug tests that were not necessary or tainted by kickbacks. We will continue fighting against those that seek to take advantage of taxpayer-funded programs."
Precision Toxicology operates as a laboratory providing urine drug testing services across the United States. The accusations centered on claims made to Medicaid that were allegedly not justified medically. It was further alleged that Precision used blanket orders for testing without individualized physician assessments and provided free testing supplies to physicians as an incentive for referrals, contravening the Anti-Kickback Statute.
The investigation was conducted by a team from the National Association of Medicaid Fraud Control Units (NAMFCU), alongside the Department of Justice and U.S. Attorneys Offices in Colorado, Connecticut, and Maryland. The NAMFCU team included representatives from several states including Florida, California, Colorado, Connecticut, Louisiana, Maryland, and Virginia.
As part of the settlement resulting from this multistate action, Precision will pay millions of dollars plus interest to resolve these allegations across multiple jurisdictions including the United States and 43 states. This resolution stems from three lawsuits initiated by whistleblowers under the False Claims Act's qui tam provisions. Two cases are identified as United States and Maryland ex rel. Hudak v. Precision Toxicology, LLC and United States, Illinois and Minnesota ex rel. Buonauro v. Precision Diagnostics, LLC et al., with a third case remaining partially sealed in Colorado.
The Florida Attorney General’s Medicaid Fraud Control Unit focuses on investigating fraudulent billing practices affecting the state's Medicaid program and also looks into patient abuse within facilities funded by Medicaid.
Funding for Florida's MFCU comes through a grant amounting to $30,510,157 for Federal Fiscal Year 2025 from the U.S. Department of Health and Human Services-Office of Inspector General. Of this funding, 75% is federally sourced totaling $22,882,620 while 25% is matched by state funds amounting to $7,627,537.