Allied Clinical Laboratories agreed to pay $4.9 million to settle charges that its Cincinnati and Salt Lake City offices falsely billed Medicare for laboratory services.
The offices submitted false information about patients' diagnoses to justify 8,000 claims worth about $500,000 between 1992 and 1994, HHS' inspector general's office charged.
Allied did not admit any wrongdoing under the settlement with the government.
In 1994, the Nashville, Tenn.-based laboratory chain was acquired by a competitor, National Health Laboratories (June 13, 1994, p. 12). It was one of several chains subpoenaed in August 1993 in a sweeping probe of laboratory billing.