Calloway Laboratories has agreed to pay $20 million to resolve allegations that the company paid employees of a medical office and multiple sober houses to unnecessarily refer patients for urine drug screenings and billed for tests that were never ordered by a doctor or authorized prescriber.

The company agreed to submit to a three year monitoring and compliance program, including an independent monitor and annual site and record audits.  The company’s CEO Arthur Levitan and COO Patrick Cavanaugh were indicted in July 2010 and, under the settlement, are barred from working for or consulting with the company or any entity controlled or owned by the company.

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