Medical diagnostic firm PerkinElmer Inc faces a federal investigation into its role in an alleged Medicare fraud involving tens of thousands of unnecessary genetic cancer tests, according to three sources with knowledge of the probe and documents reviewed by Reuters.
) faces a federal investigation into its role in an alleged Medicare fraud involving tens of thousands of unnecessary genetic cancer tests, according to three sources with knowledge of the probe and documents reviewed by Reuters.
PerkinElmer ran high volumes of tests for those clients. Investigators are focused on whether the firm knew - or should have known - that the tests were not medically necessary and that its clients were billing them to the government program for the elderly and disabled, those three sources said. The company said it supports government efforts to identify and prevent abuse in genetic testing, and that it would cooperate with such efforts “as appropriate.”
Justice Department criminal division spokesman Peter Carr declined to comment on whether PerkinElmer is under investigation. Katherine Harris, a spokeswoman for the Health and Human Services Office of the Inspector General, also declined to comment.Two businessmen – each of whom founded two labs that later outsourced genetic cancer tests to PerkinElmer – were criminally charged last fall in connection with the alleged genetic testing fraud.
Patel, who has pleaded not guilty, did not reply to a message seeking comment. His lawyer, Steven Sadow declined to comment except to say he would “aggressively” defend his client.
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