NewsLocal News

Actions

Terms of HDL deal include a $47 million fine

Default-Image_1280x720.jpg
Posted at 4:42 PM, Mar 24, 2015
and last updated 2015-03-24 16:42:59-04

A federal investigation into Health Diagnostic Laboratory could soon come to a close with a multimillion-dollar fee.

A Wall Street Journal report (paywall) published Monday states that HDL has reached a “tentative” agreement with the Justice Department after a seven-month investigation, the terms of which include a $47 million fine.

The investigation into potential anti-kickback violations has been ongoing since at least September. It centers on the legality of fees HDL and four other laboratory companies paid to doctors using its blood testing services.

HDL released a statement Monday in response to the WSJ’s report that confirms that the company will be “concluding a settlement with the Department in the very near future that will enable our company to avoid potentially expensive and protracted litigation.” The statement does not put a dollar figure on the agreement.

It says that the report was published before “the Department’s planned formal announcement of the settlement.”

The agreement with the Justice Department will include “an explicit denial of any wrongdoing,” according to HDL’s statement, as well as a “five-year corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services.”

Continue reading on RichmondBizSense.com.