NEW YORK (GenomeWeb) – Pathway Genomics has agreed to pay about $4 million to settle a lawsuit with the US Department of Justice over allegations that it improperly paid kickbacks to physicians and physician groups in exchange for patient referrals, the government agency announced yesterday.

"Kickbacks to health care providers in exchange for patient referrals undermine the medical judgment of physicians and exploit the trust of patients,” US Attorney Laura Duffy said in a statement. "Kickback arrangements with physicians also place vital taxpayer funds at risk."

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