HDL, headquartered on 5th Street, has been the subject of a federal investigation over the past several months.
A federal investigation into Health Diagnostic Laboratory could soon come to a close with a multimillion-dollar fee.
A Wall Street Journal report (paywall) published Monday states that HDL has reached a “tentative” agreement with the Justice Department after a seven-month investigation, the terms of which include a $47 million fine.
The investigation into potential anti-kickback violations has been ongoing since at least September. It centers on the legality of fees HDL and four other laboratory companies paid to doctors using its blood testing services.
HDL released a statement Monday in response to the WSJ’s report that confirms that the company will be “concluding a settlement with the Department in the very near future that will enable our company to avoid potentially expensive and protracted litigation.” The statement does not put a dollar figure on the agreement.
It says that the report was published before “the Department’s planned formal announcement of the settlement.”
The agreement with the Justice Department will include “an explicit denial of any wrongdoing,” according to HDL’s statement, as well as a “five-year corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services.”
“HDL, Inc. has worked cooperatively with the Department of Justice since the inception of its investigation of various diagnostic laboratory industry practices, many of them common within the industry,” the statement continues.
The WSJ’s report says that the Justice Department’s investigation into the other laboratory companies is ongoing. It is unclear whether they will have to pay similar fines.
The fallout for HDL, founded in 2008, has been ongoing since the investigation became widely known. Founder and CEO Tonya Mallory resigned from her post in September, two weeks after the WSJ’s initial report that called the company’s practice into question.
It has since reduced its charitable giving and in November slashed 132 positions, reducing its staff to about 740.
And HDL is also dealing with two multimillion-dollar lawsuits. Health insurer Cigna filed an $84 million lawsuit in October, alleging fraudulent billing, and BlueWave HealthCare Consultants, HDL’s former longtime sales contractor, filed a $205 million suit against the company in January.
HDL, headquartered on 5th Street, has been the subject of a federal investigation over the past several months.
A federal investigation into Health Diagnostic Laboratory could soon come to a close with a multimillion-dollar fee.
A Wall Street Journal report (paywall) published Monday states that HDL has reached a “tentative” agreement with the Justice Department after a seven-month investigation, the terms of which include a $47 million fine.
The investigation into potential anti-kickback violations has been ongoing since at least September. It centers on the legality of fees HDL and four other laboratory companies paid to doctors using its blood testing services.
HDL released a statement Monday in response to the WSJ’s report that confirms that the company will be “concluding a settlement with the Department in the very near future that will enable our company to avoid potentially expensive and protracted litigation.” The statement does not put a dollar figure on the agreement.
It says that the report was published before “the Department’s planned formal announcement of the settlement.”
The agreement with the Justice Department will include “an explicit denial of any wrongdoing,” according to HDL’s statement, as well as a “five-year corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services.”
“HDL, Inc. has worked cooperatively with the Department of Justice since the inception of its investigation of various diagnostic laboratory industry practices, many of them common within the industry,” the statement continues.
The WSJ’s report says that the Justice Department’s investigation into the other laboratory companies is ongoing. It is unclear whether they will have to pay similar fines.
The fallout for HDL, founded in 2008, has been ongoing since the investigation became widely known. Founder and CEO Tonya Mallory resigned from her post in September, two weeks after the WSJ’s initial report that called the company’s practice into question.
It has since reduced its charitable giving and in November slashed 132 positions, reducing its staff to about 740.
And HDL is also dealing with two multimillion-dollar lawsuits. Health insurer Cigna filed an $84 million lawsuit in October, alleging fraudulent billing, and BlueWave HealthCare Consultants, HDL’s former longtime sales contractor, filed a $205 million suit against the company in January.