The University of California, San Diego, has reached a settlement over claims that it ordered unnecessary genetic tests that were then billed to Medicare, the San Diego Union-Tribune reports.
Federal prosecutors alleged that USCD Health ordered unneeded genetic tests from CQuentia Arkansas Labs, CQuentia NGS, and Total Diagnostic II, leading to the submission of false claims for payment in violation of the False Claims Act. "Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare," Randy Grossman, the US attorney for the Southern District of California, says in a statement.
According to the Union-Tribune, UCSD has paid nearly $3 million to settle those claims without admitting liability.
UC San Diego Health spokesperson Jacqueline Carr says in a statement that the settlement will allow the hospital to focus on patient care, the Union-Tribune adds. "Working at the forefront of patient care sometimes involves the use of new technologies from emerging companies. When UC San Diego Health learned that the Department of Justice had concerns about one of our technology providers, we fully cooperated and promptly resolved the matter," Carr adds.
The Union-Tribune notes that CQuentia appears to have gone out of business.