UCSD Health Pays $3M to Settle False Claims Allegations

DOJ had alleged that from December 2015 to October 2019, UC San Diego Health submitted claims to Medicare for the unneeded tests.

UC San Diego Health has paid $2.98 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary genetic testing reimbursed by Medicare, the U.S. Department of Justice said.

DOJ had alleged that from December 2015 to October 2019, UC San Diego Health submitted claims to Medicare for the unneeded tests, which were processed by the now-shuttered CQuentia Arkansas Labs, CQuentia NGS and Total Diagnostic II.

"Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare," said U.S. Attorney Randy Grossman for the Southern District of California.

Tennessee-based CQuentia, now closed, was itself the subject of a federal False Claims Act lawsuit in 2017 alleging that the company made bogus claims to consumers that its genomic tests could protect them from adverse drug reactions.

UCSD Health issued a statement acknowledging the settlement but admitted no liability.

"When UC San Diego Health learned that the Department of Justice had concerns about one of our technology providers, we fully cooperated and promptly resolved the matter," the health system said in prepared remarks.

"The DOJ's settlement announcement alleges that our doctors ordered tests from a company that then allegedly made false claims about those orders. This settlement does not assign any liability to UC San Diego Health and provides a prompt resolution that allows us to continue our focus on providing outstanding care for patients."