San Diego-based lab company Precision Toxicology, operating as Precision Diagnostics, agreed to pay $27 million to resolve allegations it submitted false claims for medically unnecessary urine drug tests and provided free items to physicians who referred expensive laboratory testing business to them.
From Jan. 1 2013 to Dec. 31, 2022, the company allegedly encouraged physicians to order excessive and unnecessary urine drug tests through the promotion of "custom profiles." These profiles, which were essentially standing orders, led physicians to order a large number of tests, according to an October 2 news release from the Department of Justice.
Precision also allegedly provided physicians with free urine drug test cups on the condition that the specimens be returned to Precision for additional testing.
As part of the settlement, Precision has also entered into a five-year corporate integrity agreement with the Department of Health and Human Services