Connecticut Attorney General's Office

Press Release

Attorney General Announces State To Receive $104,000 In Settlement With Med Lab For Allegedly Defective Tests

Date, 2009

Attorney General Richard Blumenthal today announced that the state has received $104,827 from Quest Diagnostics Incorporated to settle allegations its subsidiary billed the state Medicare program for defective and inaccurate medical tests.

The payment is part of a $12.4 million settlement between Quest and Connecticut, other states and the U.S. Department of Justice.

Blumenthal worked with other state attorneys general to achieve the settlement in coordination with Department of Social Services (DSS) Commissioner Michael P. Starkowski and Chief State's Attorney Kevin T. Kane.

Connecticut and other states alleged that from 2000 to 2006 Quest's Nichols Institute Diagnostics subsidiary billed their Medicare programs for defective tests to determine whether patients with late stage kidney disease also had thyroid problems. The states charged that those and other tests were inaccurate. Quest denied the allegations, but agreed to the settlement.

Blumenthal said. "Quest chiseled the state and cheated patients by charging for allegedly inaccurate and faulty tests. This settlement sends a powerful message: Lab companies must provide accurate medical tests or pay a severe and serious penalty. This settlement returns funds to state taxpayers for allegedly defective and deficient diagnostic tests."

Quest has closed Nichols Institute Diagnostics.