RDx Bioscience, a New Jersey-based clinical laboratory, along with its CEO Eric Leykin, has agreed to pay over $13 million to the Department of Justice (DOJ) to resolve allegations of engaging in illegal kickback schemes. The settlement was reached following claims by the DOJ that the company and its CEO were involved in kickback activities designed to induce referrals for lab testing between 2017 and 2023. The agreement, finalized on Wednesday, outlines that RDx Bioscience and Leykin will pay approximately $10.3 million to the DOJ and an additional $2.9 million to the state of New Jersey.
This payment is in response to parts of the claims alleged to be false and submitted to New Jersey’s Medicaid program. According to the DOJ’s settlement agreement, Leykin allegedly coordinated with independent marketers to offer kickbacks to healthcare providers, staff, and principals at certain substance abuse recovery centers. These payments were reportedly disguised in the company’s records as investment returns, consulting fees, or medical director fees. The DOJ also alleged that RDx Bioscience billed Medicare, Medicaid, and other federal programs for laboratory tests that were not reasonable, necessary, or were duplicative. These claims involved billing for the same laboratory service for the same patient on the same day.
Brian Boynton, the principal deputy assistant attorney general and head of the DOJ’s Civil Division, stated in a press release, “Kickbacks for laboratory referrals, regardless of how they are disguised, are illegal and can influence medical providers’ decision-making, leading to unnecessary and costly testing for patients. The DOJ is committed to holding accountable those who partake in such schemes that damage the integrity of federal healthcare programs and burden taxpayers.” As part of the compliance requirements of the settlement, RDx Bioscience and Leykin must identify and report any unallowable costs billed to Medicare, Medicaid, TRICARE, or other federal health programs within 90 days.
They are also required to adjust the payments to reflect these unallowable portions and repay the federal government for any overpayments received, along with applicable interest and penalties. The settlement does not preclude the possibility of future audits by the DOJ on RDx and Leykin. Additionally, both the company and Leykin have agreed to cooperate fully with any further investigations conducted by the DOJ. As of the time of reporting, RDx Bioscience had not responded to requests for comment regarding the settlement.
Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.
#RdxBioscienceSettlement #HealthcareCompliance #DOJSettlement #MedicareMedicaidFraud #LabTestingKickbacks #HealthcareFraud #FederalHealthcareIntegrity #DOJEnforcement #NewJerseyMedicaid #EricLeykinSettlement
