Clinical Pathology Laboratory Executives Indicted and Arrested by U.S. Attorney in New Jersey for Bribery, Inducement, and Other Crimes

Biodiagnostic Laboratory Services’ president takes $33 million out of his medical company during the seven years of 2006-2013

Few clinical laboratory professionals were surprised at last week’s news that another medical laboratory company and a referring physician were hit with criminal indictments for violating Medicare anti-kickback statues and other federal and state laws.

The announcement was made by U.S. Attorney Paul J. Fishman of New Jersey. Defendants in this case are Biodiagnostic Laboratory Services LLC (BSL), of Parsippany, New Jersey, three of its executives, and one physician who referred medical laboratory tests to BSL.

Few laboratory professionals will be surprised at news of this case. After all, a substantial number of clinical laboratory professionals regularly see, within their service areas, examples of medical laboratory companies willing to interpret federal and state compliance laws quite aggressively and cross the line into illegal actions. What is uncommon is to have federal prosecutors build a criminal case against a lab company accused of having violated anti-kickback laws. (more…)