A California-based life sciences company that makes diagnostic tests for the treatment of autoimmune conditions, Exagen Inc., has agreed to pay $653,143 to resolve allegations that it paid specimen processing fees to referring physicians to induce those physicians’ use of Exagen’s laboratory tests. According to the settlement agreement, Exagen agreed to factual admissions that it paid certain referring physicians to complete blood draws for patients pursuant to specimen processing agreements that Exagen entered into with those physicians. Exagen billed federal healthcare programs, including Medicare and other programs, for tests that it performed after receiving orders from the referring physicians to whom it paid the specimen processing fees. Exagen did so after becoming aware of a June 25, 2014, Special Fraud Alert from the Department of Health & Human Services’ Office of the Inspector General (HHS-OIG) that warned laboratories that the practice of paying referring physicians specimen processing fees could present a substantial risk of fraud and abuse.
