Corning (N.Y.) Clinical Laboratory has agreed to pay almost $6.7 million to settle fraud charges against a firm it acquired.
The company, Bioran Medical Laboratories, gained more than $3 million from wrongfully billing Medicare and other government programs, according to the U.S. attorney's office in Boston.
The charges date to 1989 when Cambridge, Mass.-based Bioran was an independent firm. Corning acquired it in late 1994.
Without notifying physicians, Bioran stopped billing serum iron tests as part of a package and began billing it as a separate service. Many physicians still believed they had no choice but to accept the test when ordering the package, the government said.
A Corning spokeswoman said the settlement is not an admission of wrongdoing on the part of either company.
Several laboratory firms have settled charges under the False Claims Act since 1993, when the government began a probe of the industry. Corning paid $35 million to settle a 1993 case that also involved billing for tests marketed as a package. It didn't admit any wrongdoing.