Fraud Allegations

Andrew Baker, the former CEO of Unilab, filed a whistleblower lawsuit against Quest Diagnostics in 2005 and one against Laboratory Corporation of America Holdings in 2007, accusing them of Medicare fraud, reports Bloomberg. Baker tells The Dark Report that the companies — Quest bought Unilab in 2003 — allegedly offered insurance companies discounts on lab tests if the insurance plans recommended that their network doctors send patients to their labs, Bloomberg says. In addition, Baker's suit claims that the labs then charged Medicare and Medicaid higher prices. Quest tells Bloomberg that the company has "complied with Medicare and Medicaid pricing requirements," and LabCorp did not respond to Bloomberg's request for comment.