GENCO LAB, LLC, a reference laboratory based in Branford, Connecticut, and its owners and officers have agreed to pay over $1.2 million to resolve allegations of submitting false claims to government health care programs. The settlement was announced by David X. Sullivan, United States Attorney for the District of Connecticut.
The civil settlement involves GENCO LAB, majority owner Paul Conroy, part owner Charles Orefice, and Chief Operating Officer Tricia Conroy. According to the government, Genco and its leadership submitted claims for medically unnecessary urine drug tests for Medicare and Medicaid beneficiaries living in sober homes. These tests were conducted solely for “residential monitoring,” which is not allowed under program rules. The government also alleges that Genco billed for duplicative urine drug testing that was not medically necessary.
Urine drug testing typically involves two types: screening (presumptive) tests and confirmation (definitive) tests. Screening tests detect the presence or absence of certain classes of drugs but do not measure specific amounts. Confirmation tests are more precise and expensive; they identify both the presence and quantity of a particular drug in a sample.
According to the allegations, Genco routinely performed both screening and confirmation tests on Medicaid and Medicare patients at the same time without first reviewing screening results to determine if further testing was needed. This practice led to both types of tests being billed simultaneously each time a patient was tested.
To settle these allegations under the False Claims Act, Genco Lab and its owners have agreed to pay $1,255,825 covering conduct from September 2021 through December 2023.
The investigation was conducted by the Office of Inspector General for the Department of Health and Human Services. Assistant U.S. Attorney Richard M. Molot and Assistant Attorney General Christine Miller from the Connecticut Office of the Attorney General prosecuted the case.
David X. Sullivan stated: “People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.”
