Quest Diagnostics Pays $13 Million to Settle Kickback Allegations Over Free Giants Suite Events for Doctors
The U.S. Attorney's Office for the District of New Jersey announced on November 6 that clinical laboratory company Quest Diagnostics has paid $13,014,576 plus interest to resolve allegations that it provided illegal kickbacks to doctors and health care executives and submitted false claims to Medicare and the New York and New Jersey Medicaid programs.
Quest Diagnostics, based in Secaucus, New Jersey, is one of the largest clinical laboratory companies in the United States. According to U.S. Attorney Robert Frazer, after Quest entered a naming rights and sponsorship agreement with the New York Giants in 2013, it received suite seats at MetLife Stadium and other benefits. Between July 25, 2013, and August 3, 2022, Quest allegedly turned those benefits into free entertainment for decisionmakers at client accounts who could refer patient testing business to Quest, including game-day suite seats with food and alcohol, and at times parking and field access for pre-game warmups.
The alleged entertainment also included VIP training camp viewing, draft chalk talks hosted by former Giants players, and family combine days led by players. Prosecutors said Quest executives and sales representatives targeted decisionmakers from its highest-value accounts, tied specific sales goals to the invitations, and, from 2013 through 2016, measured the return on investment by comparing revenue from entertained accounts before and after the events.
"Kickbacks to referring providers corrupt medical judgment, lead to unnecessary lab testing, and squander taxpayer money," Frazer said. Along with the civil settlement, Quest entered into a five-year Corporate Integrity Agreement with the HHS Office of Inspector General, requiring independent review of its risk assessments and audits involving referral sources.
The case began as a whistleblower lawsuit under the False Claims Act; the three relators will receive a combined $2,472,769. The Justice Department stressed that the claims resolved by the settlement are allegations only and there has been no determination of liability. Quest has said it denies any wrongdoing and agreed to the settlement in 2025 to put the matter behind it. (Source: U.S. Department of Justice)
Source: U.S. Department of Justice
Published by GSM · USA (original Chinese edition)
Photo: 图：位于 California 州 Manteca 的一家 Quest Diagnostics 患者服务中心。TaurusEmerald 摄，CC BY-SA 4.0，经 Wikimedia Commons。 / Photo: A Quest Diagnostics patient service center in Manteca, California. By TaurusEmerald, CC BY-SA 4.0, via Wikimedia Commons.
