Substance Abuse Treatment Labs in Greensboro, along with its owner Paul Fribush, has agreed to pay $850,000 to settle civil allegations of violating the False Claims Act. The laboratory was accused of billing North Carolina Medicaid for unnecessary urine drug screening tests. This announcement was made by Acting U.S. Attorney Randall Galyon.
The United States and North Carolina alleged that between January 2018 and January 2022, the lab submitted false claims for high-level urine drug testing to Medicaid. These tests were billed at the highest reimbursement rate despite indications they were not medically necessary.
"Protecting taxpayer dollars used to provide medical benefits to those who need it most is essential to this Office’s mission," stated Acting United States Attorney Randall Galyon. He emphasized the importance of holding accountable those who exploit taxpayers by submitting false claims and expressed gratitude for the partnership with the North Carolina Attorney General’s Office in pursuing justice on behalf of Medicaid.
Special Agent in Charge Kelly Blackmon from the U.S. Department of Health and Human Services Office of Inspector General highlighted that "submitting false claims to Medicaid undermines the program’s integrity and wastes valuable taxpayer dollars." She reiterated HHS-OIG's commitment to safeguarding Medicare and Medicaid's integrity.
This resolution was achieved through coordinated efforts among several entities including the U.S. Attorney’s Office for the Middle District of North Carolina, the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and other relevant bodies. Assistant United States Attorney Rebecca Mayer and Special Assistant United States Attorney Matthew Petracca represented the United States in this matter.
It should be noted that these resolved claims are only allegations, with no determination of liability established.