Quest Diagnostics, based in Madison, N.J., said it had agreed in principle to settle allegations that it overcharged Medi-Cal, California's Medicaid program, for laboratory testing services.
Quest Diagnostics agrees to $241 million settlement
The company said it agreed in principle to pay $241 million to settle the allegations that it did not comply with California's “comparable charge” rules. Quest also agreed to reporting obligations for pricing during a “limited time” and to provide Medi-Cal with a discount through July 2012, according to its news release.
Quest said in a news release that if the settlement is not approved by the company's board of directors or the state, it “will continue to vigorously defend itself in the pending litigation and could incur significant costs in doing so.”
The California Justice Department said that it had not yet entered into an agreement with the company, according to a spokesperson.
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