Signaling its continued scrutiny of the laboratory industry, the Department of Justice entered a settlement agreement with Texas lab Genotox Laboratories related to compensation Genotox paid to sales reps for recommending Genotox’s urine drug tests. Genotox will pay $5.9 million.
SUPPORT Act's Eliminating Kickbacks in Recovery Act EKRA was enacted by Congress in 2018 to address patient brokering and kickback schemes in recovery homes, clinical treatment facilities. Implemented legislation had broader reach as clinical laboratories were included.
The Eliminating Kickbacks in Recovery Act is a criminal statute prohibiting paying or receiving anything of value in exchange for the referral of patients to recovery homes covered by a health care benefit program. In 2021, DOJ expanded the scope of its EKRA enforcement actions.
Eliminating Kickbacks in Recovery Act, 18 U.S.C. § 220, EKRA targeted patient brokering and kickback schemes in addiction treatment spaces, but also applies to clinical laboratories, so public, private insurance plans, self-pay patients fall within reach of statute.
Mark Schena, President of Arrayit Corporation, has been found guilty for violations of Eliminating Kickbacks in Recovery Act EKRA, healthcare fraud, wire fraud, securities fraud. Superseding indictment issued against him for promoting Arrayit with false statements.