Genco Lab, a reference laboratory based in Branford, Connecticut, and its owners and officers have agreed to pay over $1.2 million to settle allegations of submitting false claims to government health care programs. The settlement resolves claims that the company billed Medicare and Medicaid for medically unnecessary urine drug tests.
According to the U.S. Attorney for the District of Connecticut, David X. Sullivan, Genco Lab, along with majority owner Paul Conroy, part owner Charles Orefice, and Chief Operating Officer Tricia Conroy, reached a civil settlement agreement with federal and state authorities. The payment will address alleged violations that occurred between September 2021 and December 2023.
The government alleges that Genco submitted claims for urine drug tests performed on Medicare and Medicaid beneficiaries residing in sober homes solely for “residential monitoring,” which is not permitted. In addition, the lab allegedly billed for duplicative urine drug testing that was medically unnecessary.
Urine drug testing generally includes two types: screening (or presumptive) tests and confirmation (or definitive) tests. Screening tests provide a positive or negative result indicating the presence of certain classes of drugs but do not measure quantity. Confirmation tests are more precise and expensive, measuring both presence and specific amounts of drugs in a sample.
Authorities allege that Genco routinely conducted both types of tests at the same time on the same day for patients without having a practitioner review the initial screening results first to determine if further testing was needed. As a result, government health care programs were regularly billed for both types of tests each time a patient was tested.
“This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Christine Miller of the Connecticut Office of the Attorney General.”
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or contacting the Health Care Fraud Task Force at (203) 777-6311.
