Connecticut Attorney General William Tong announced that the state has joined a coalition of the United States, the District of Columbia, and 42 other states in a $27 million settlement with Precision Toxicology, LLC, operating as Precision Diagnostics, Inc. The settlement addresses allegations that Precision submitted false claims to Medicaid for urine drug testing (UDT) that was either unnecessary or influenced by kickbacks. Connecticut will receive $277,780.24 as part of the restitution.
Precision will pay the settlement amount plus interest to resolve allegations made in three lawsuits filed under the False Claims Act's qui tam provisions. These provisions allow private parties to sue on behalf of the government and share in any recovery. Two cases are titled 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., while a third case remains partially sealed in Colorado.
The toxicology laboratory provides UDT services nationwide primarily for substance use disorder and pain management providers. Allegations state that from January 1, 2013, through December 31, 2022, Precision submitted false claims for UDT not deemed medically necessary by physicians for specific patients. Additionally, it is alleged that between January 1, 2013, and June 30, 2014, Precision violated the Anti-Kickback Statute by offering free UDT cups to physicians in exchange for referrals.
Attorney General Tong stated: "Kickbacks and claims for medically unnecessary tests threaten the integrity of public health care programs and waste taxpayer dollars." He emphasized continued efforts to eliminate illegal practices affecting public healthcare programs.
The National Association of Medicaid Fraud Control Units (NAMFCU), alongside the Department of Justice and various United States Attorneys Offices including those in Colorado, Connecticut, and Maryland conducted investigations into these allegations. The NAMFCU team comprised representatives from multiple state Attorneys General offices including Florida and California.
Assistant Attorney General Karla Turekian along with Forensic Fraud Examiner Lisa Bailey and Deputy Associate Attorney General Gregory O’Connell supported Attorney General Tong in this matter.