Diagnostic Laboratories and Radiology (Diagnostic Labs), a California-based mobile lab and x-ray provider, will pay $17.5 million to resolve allegations that it paid kickbacks for referral of its services subsequently billed to Medicare and Medi-Cal, California’s Medicaid program. According to the allegations, Diagnostic Labs charged discounted rates to Skilled Nursing Facilities (SNFs) for inpatient services paid by Medicare, in return for referral of outpatient business to Diagnostic Labs.

The settlement resolves a whistleblower lawsuit filed by former employees, Jon Pasqua and Jeff Hauser, who will jointly receive $3,755,500 for bringing the alleged fraud to the government’s attention.

Read the entire press release, “California Mobile Lab and X-ray Provider, Diagnostic Laboratories and Radiology, to Pay $17.5 Million for Falsely Billing Medicare and Medi-CAL”