Health Diagnostic Laboratory has settled the lawsuit regarding the unfair trade practices.
The laboratory has promised to initially pay $48.5 million to the Department of Justice. Afterwards, HDL along with Singulex Inc. will give $1.5 million in second round.
As per the conditions of the settlement, the payment could ascend up to $100 million. HDL has to pay 75 percent of the appraisal to the government. However, the firm has to pay further amount, in case it sells its assets.
The Health Diagnostic Laboratory and Singulex Inc. were also accused for bribing doctors. They asked health professionals to refer unnecessary blood test to patients. Both the firms gave $10 to $17 to doctors for this purpose.
Vincent Cohen, the acting US Attorney, showed concern over the issue. He states that patients believe that doctors take medical decisions devoid of any greed. Hence, these kickbacks for generating revenue are big threat to patient’s trust.
Moreover, these kickbacks are damaging the federal healthcare system as well. It mounts up the cost of annual federal healthcare costs.
On the other hand, spokesperson of HDL completely denies all the charges. He informs that the settlement is merely for the sake of patients.