Edmund G. Brown, Jr. (Jerry) Public Health

Jerry Brown & Whistleblowers Say the Nation’s Biggest Diagnostic Lab Defrauded California for Big $$$

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I’m in the middle of a several crazed project deadlines, and I realize that most news is either AIG or Obama related, which for the moment I’m ignoring.


But, it is worth noting Attorney General Jerry Brown will hold a press conference
this morning to announce that he is suing Quest Diagnostics, along with six other diagnostic labs—five of which are based in Los Angeles. He hopes to recover hundreds of millions of dollars that Quest and the others fraudulently overcharged the State’s MediCal system—which means you and me. (Again.)

(The fact I’ve used Quest for myself and my son on several occasions does not make any of this at all comforting. The woman I talked to on Jerry’s staff was similarly uncomforted by the news, she told me.)

The Sacramento Bee appears has written most of the advance story so I don’t have to. Here are some clips.


Eight medical laboratories defrauded California of hundreds of millions
of dollars by billing the state’s Medi-Cal program up to 500 percent more for tests than it billed other patients, the attorney general has alleged in a whistle-blower lawsuit.

Attorney General Jerry Brown will unveil details of the complex case, outlined in a 41-page civil complaint filed under the California False Claims Act, at a morning news conference today in Los Angeles.

The defendants include the two largest diagnostic lab
companies in the United States: Quest Diagnostics Inc., which has 500 facilities in California, and Labcorp, which has more than $3 billion in annual revenue. The firms, which have had trouble with the state in the past over billing issues, could not be reached for comment.

The fraud allegations were first made by lab industry whistleblower Chris Reidel
and Hunter Laboratories of Campbell in November 2005 and remained sealed until recently, San Mateo Superior Court records show.

[SNIP]

The state and the whistle-blowers said they have records showing that Quest charges Medi-Cal $8.59 each for the most frequently ordered blood test – an automated hemogram. Quest charged other clients as little as $1.42 for the same test, court records state.

Labcorp charged the state $35 for a testosterone test given to Medi-Cal patients, while billing other clients only $7.36 for the test, the court records add.


I realize that since we now routinely talk about giving away hundreds of billions of bucks,
the odd hundred million may seem frighteningly like chump change.

But as our state grows ever more broke and budget strapped, the chumps in Sac’to can use all the spare change they—and we—can get.

16 Comments

  • So, where has the State been for all the years when this “hundreds of millions” has been lost…if it has? Goverment can’t keep adequate track of AIG, MediCal, …nothing! But, let’s give them the chance to toss out a couple trillion more with no controls or accountability.

    If anyone should go to jail, it’s the State employees who were supposed to be monitoring this.

  • A corporation defrauds the state and is being prosecuted by the AG and our accountability expert says that this means state employees should go to jail, not the corporation that committed the fraud.

    Welcome to Bizarro World…I have no problem with going after lax regulators if that case also can be made – fire them – but this kneejerk attitude is a symptom of total insanity.

    Now let’s watch the idiot explain why I’m the wacko…(aside from the case that can be made against me for even bothering to comment on this latest piece of drivel.)

  • Idiot, I never said not to hold the corporations accountable. But, if the corporations are guilty of fraud over several years, then the State overseers are guilty of civil negligence for letting it go on for so long.

    It would only be Bizarro World if the government employees, who screw up all the time and wreck lives with their incompetence, had to personally suffer and pay for damages when the State loses claims.

    If the State Examiners are charged with catching fraud and bookeepeing errors, then they should at least have the sufficient competence and diligence to do their jobs, which it apperas is not the case.

    Just think of the impact on the California budget with such inemptness, not only in this matter, but on the hundreds that probably haven’t been caught yet. Those bucks could have come in handy.

    There is one other issue, and that’s the ridiculous reporting and approval procedures set up by the state that requires three people to figure out rather than one front desk lady. It’s no wonder that mistakes are made.

  • “If anyone should go to jail, it’s the State employees…” That’s it…a tirade against the government.

    Who’s the idiot ?

  • Presumably this rant is rooted in the resident moron’s belief that Medicare and other social insurance is against his righteous principles. And, of course, a moronic tirade that the reason Quest pulled this shit is that the paperwork is too burdensome and it’s all “mistakes.”

    This drivel-monger reveals himself to be a total piece of shit, as usual.

  • Well, you watch how it comes out.

    It will be that the claimed “overbilling” will be determined to be correct after all, and that other overcharges, a minority, were honest mistakes, exasperated by unclear and confusing State guidelines and in a rotten system set up by the State itself. It’s not a conspiracy among hundreds of employees of a big company. Fraud is hard to prove.

    Further, honest mistakes, if proven, are not crimes resulting in prison. However, negligence, short-cuts, and concealments by regulators are crimes that would result in prison if done by private companies and should result in prison when done by State employees, especially if they cost the taxpayers even one-third of what is purported.

    This is a preview of what to expect from Obama’s socialized medicine.

    As usual, reg’s knee is jerking at 1,000 times a minute and he has already convicted the companies and can’t imagine failures by the State. How does he justify his position? By calling me names. What a typical and pathetic left-wing smear in absence of intelligent discussion.

  • If you check AIG’s own website you’ll see they have also paid 56.5 million dollars to sponsor Englands Manchester United Football(soccer) Team. The Manchester United website confirms this. That’s 56.5 million of our tax dollars being spent in England and not creating one single job in America. Good work Democrats. Wait until 2010. The elections will destroy the Democratic party.

  • Yeah, Do’h! – why did Obama and the Dems initiate this AIG bailout back in September. Everyone knows they controlled the Federal Reserve.

    What stupidity !!!! Opportunistic partisan bullshit is all these wimps are capable of. And of course these are the moonbats who defended Bush for years. Suffice to say, that anyone who predicts the destruction of the Democratic Party in the 2010 elections is a blithering idiot at the level of Glenn Beck (who is creating a run on Depends in FOX News audience circles.)

    (I’ll be more than happy to take any bets up to 10 grand on this prediction. Except, these guys balthering here aren’t people one could trust to make good, because they’ll go Norm Coleman and try to weasel out or claim the elections were fixed.)

  • D’Oh,

    I’m offended about the Man U sponsorship, but then again I’m an Arsenal fan.

    As for the 56.5 million, a.) it’s in pounds, not dollars (which makes it about US$100 million and b.) the four year sponsorship was consummated three years ago,/b> next month meaning that it has one year remaining.

  • I stand corrected, AIG payed 56.5 million pounds to have its logo on United’s jerseys, a whopping 57 percent increase from the previous deal with Vodafone Group Plc. that these imbicellic fools authorized.

  • This story is completely ridiculous, but I’m not surprised. I had to have some bloodwork done at Quest recently, and it was not fun. I put the story up on my blog in light of this recent news.

  • HOW LONG HAS IT BEEN GOING ON. BROWN HAD THIS INFO 3 OR 4 YRS. NOW HE IS GOING TO RUN FOR GOVERNOR, HE LOOKS AT THIS SO CALLED FRAUD, HE LOOKS AT THE ANNA NICOLE SMITH DEATH. TO BE HONEST HE HAS BEEN IN OFFICE FOR WHATEVER LEANGTH OF TIME,YOU DON’T HEAR ANYTHING FROM HIM THAT WAS WORTH WHILE, NOW HE BECOMES A CRIME BUSTER.SOMETHING STINKS.WHY NOT LOOK INTO THE EDD AND ROOT OUT INCOMPENTENCE AND MANAGERS OF THE INVESTIGATING DEPT.WHO CHECK ON BUSINESSES AND SWIPE EVERY ONE WITH TRHE SAME BROAD INCOMPENTENT BRUSH. BUT THAT WOULD NEVER HAPPEN BROWN IS FROM THE SAME INVIROMENT. I HAVE MORE TO SAY BUT WHAT GOOD WOULD IT DO. THIS WILL ONLY GO IN THE ROUND FILE

  • BTW, I HATE this lab. I used it several times for bloodwork tests and it was like going to Dachau.

    Last time I went I got into a mondo argument. I asked them to show me their fee sked (which they are required be law to have) and no one could produce. The automaton behind the desk asked me what diff it made as I had insurance! You can imagine what I said! I actually found a Ma and Pa sort of lob in the same Med Center that I now use.

    But Quest? Literal Bloodsuckers!

  • I had some work done at Quest in Oakland and it was fine – nice people. That’s not a recommendation – just an observation that they obviously have very serious quality control problems along with the other stuff. I was given a list by my doctor and used them because of proximity. I’d probably use them again – but only because other’s experiences show a potential for nightmares even with such a basic proceduire – but the process as I experienced it is that the doctor gives you a sheet to choose from. As I said, I chose them simply based on their very convenient – to me – address. It’s lousy that practitioners don’t seem to vet who they recommend. I’ll probably use Quest again, because of a relatively good one-on-one experience and decent service (covered by insurance) – but I’m wondering if there’s any online service that rates these folks. It would be useful – especially since all of the SoCal users have had horror stories dealing with Quest, aside from the probable rip-off they’re engaged in.

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