Quest Diagnostics pays $13M to settle allegations tied to Giants ticket perks
Federal prosecutors alleged the Secaucus-based company provided free entertainment events to health care decision-makers to induce laboratory testing referrals.
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Quest Diagnostics Inc., based in Secaucus, has paid more than $13 million to settle allegations that it violated federal anti-kickback laws by providing free entertainment benefits to health care providers in exchange for referrals for laboratory testing services, federal prosecutors announced Friday.
According to the U.S. Attorney's Office for the District of New Jersey, Quest paid $13,014,576 plus interest to resolve allegations involving referrals billed to Medicare and Medicaid programs in New Jersey and New York. Prosecutors alleged the benefits included free suite tickets for New York Giants games and other exclusive hospitality events.
Quest denied wrongdoing.
"We wholeheartedly deny these allegations and the settlement contains no determination of liability," the company said in a statement provided to News 12. Quest said it agreed to settle the matter more than a year ago to put the dispute behind it.
Federal authorities alleged that between 2013 and 2022, Quest provided tickets to Giants games, VIP training camp events, draft-related programs and other hospitality experiences to current and prospective clients with the ability to influence laboratory testing referrals.
As part of the settlement, Quest entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General. The agreement requires independent reviews of certain compliance practices involving referral sources.
The settlement stems from a whistleblower lawsuit filed under the federal False Claims Act. The whistleblowers will receive about $2.47 million from the recovery, according to prosecutors.
The U.S. Attorney's Office said the settlement resolves allegations only and does not constitute a determination of liability.
