Multistate Coalition Settles False Claims Allegations with Precision Diagnostics

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  • A multistate coalition of 44 AGs and the U.S. Department of Justice settled with Precision Toxicology, LLC d/b/a Precision Diagnostics, Inc. (Precision) to resolve allegations that it made false claims to multiple federal healthcare programs in violation of state and federal false claims and anti-kickback laws.
  • According to the AGs, Precision allegedly had a policy and practice of using non-allowable blanket orders for urine drug testing (UDT) without requiring a doctor to make an individualized determination that the UDT was medically necessary or reasonable for a particular patient, and it allegedly provided free point-of-care UDT cups to doctors in exchange for UDT referrals.
  • Under the terms of the settlement, Precision must pay $27 million plus interest to the government, $18.2 million of which will go to the DOJ and the remainder to the states and D.C.
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