Lab company to pay $53M for overcharging Medicare

GAMBRO Healthcare has agreed to pay $40 million for overcharging Medicare, Medicaid, and TRICARE, the U.S. Department of Justice (DOJ) announced July 13. The Swedish-owned system and another subsidiary, Dialysis Holdings Laboratory Services, also agreed to pay $13.1 million to settle similar allegations.

DOJ reports that in 1997, the Health and Human Services’ Office of Inspector General started investigating the billing practices of a GAMBRO renal dialysis laboratory in Fort Lauderdale, FL, and another lab as part of Operation Restore Trust. DOJ says investigation turned up evidence that the Fort Lauderdale lab billed federal health care programs for medically unnecessary lab tests for end stage renal disease patients and double-billed.

DOJ spokesman Charles Miller says the agreement was unexpectedly revealed by GAMBRO earlier than anticipated, and DOJ has yet to receive a copy of the final settlement.