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Secaucus-Based Quest Diagnostics Pays $13 Million to Settle Kickback Claims
Quest Diagnostics, the lab testing company based in Secaucus, paid $13,014,576 plus interest to settle allegations that it used free New York Giants tickets and events to win referrals from health care providers, U.S. Attorney Robert Frazer announced on Friday, Nov. 6.
Federal prosecutors alleged that from July 2013 to August 2022, Quest gave doctors and other decision-makers free seats in its MetLife Stadium suites at Giants home games, along with food, drinks and sometimes parking or field access. Quest also invited clients to VIP training camp sessions, draft events with former Giants players and family football drills, according to the U.S. Attorney’s Office.
The perks came through a 2013 naming rights and sponsorship deal Quest signed with the Giants. Prosecutors said Quest targeted decision-makers at its highest-value accounts, tied sales goals to the invitations and tracked how much revenue it gained after each event. Quest then billed Medicare and New York and New Jersey Medicaid for lab tests referred by those clients, prosecutors said.
“Kickbacks to referring providers, especially by lab companies, corrupt medical judgment, lead to unnecessary lab testing, cause providers to steer patients to labs that offer inducements, and squander taxpayer money,” Frazer said.
The case began as a whistleblower lawsuit filed under the False Claims Act by Dr. Gerard Abate, Lori Anderson and Dr. Douglas Rabin, who will share $2,472,769 of the settlement.
Quest also agreed to a five-year Corporate Integrity Agreement with the Office of Inspector General of the U.S. Department of Health and Human Services, which requires an independent review of how the company handles payments and benefits to referral sources.
