LAS VEGAS (KLAS) — Nevada has joined a multistate $16M dollar settlement due to allegations of Medicaid fraud.
The settlement names MD Spine Solutions LLC, MD Labs Inc. as the party involved. The allegations in the settlement case state that from Jan. 1, 2015, through Dec. 31, 2019, MD Labs improperly billed, or caused to be billed, federal health care programs for unnecessary urine drug testing.
The allegations included both presumptive tests, a less expensive test that quickly provides qualitative results, and confirmatory tests, a more expensive test that is designed to confirm quantitatively the results of presumptive tests.
According to allegations, MD Labs performed both tests at or around the same time and then simultaneously reported the results to health care providers. The suit continues by alleging that MD Labs, Grizelj, and Rutledge knew that this rendered the presumptive test results irrelevant for most health care providers.
The government alleges that MD Lab’s conduct violated the Federal False Claims Act and the Nevada False Claims Act and resulted in the submission of false claims to the
Nevada Medicaid program.