Precision Toxicology Pays $27M to Settle Fraud Allegations Amid Opioid Crisis


Last Updated On: October 16, 2024

In a landmark settlement, Precision Toxicology has agreed to pay $27 million to resolve allegations of fraudulent billing practices.

The San Diego-based lab, one of the nation’s largest in urine drug testing, faced accusations from Maryland’s Attorney General Anthony G. Brown of charging government health programs for unnecessary tests and offering kickbacks to physicians for referrals.

According to Brown’s office, Precision’s widespread use of blanket orders pressured doctors into conducting numerous drug tests without properly assessing patient needs, exploiting the already devastating opioid epidemic.

The Attorney General didn’t mince words: “We won’t allow companies to cheat taxpayers by pushing Marylanders into unnecessary drug tests.”

The accusations stemmed from a whistleblower, Bryce Hudak, a clinical director in Baltimore.

His tip led to a federal and state investigation, revealing a troubling pattern of excessive billing in drug testing from 2013 to 2022.

Precision was also accused of offering physicians free urine test cups on the condition that they sent the specimens back for further testing, a violation of anti-kickback laws.

Beyond the financial penalty, Precision signed a five-year Corporate Integrity Agreement, allowing federal oversight of its operations and mandating reforms.

Of the settlement, $18.2 million will go to the federal government, while Maryland will receive $5.7 million.

Other states, including Illinois, Virginia, and Georgia, will also get their share. Hudak himself will receive $2.7 million for his whistleblower role.

This settlement reflects the ongoing battle against corporate profiteering in the opioid crisis.

As states continue to hold companies accountable, the message is clear: those who try to exploit this public health disaster will face consequences.

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