Attorney General Ashley Moody’s Medicaid Fraud Control Unit secured more than $700,000 in a multistate action against Precision Toxicology, LLC d/b/a Precision Diagnostics, Inc. The action comes after allegations that Precision knowingly submitted or caused to be submitted false claims to federal healthcare programs related to urine drug testing that was not medically necessary or tainted by kickbacks. Precision is a toxicology laboratory that markets and performs laboratory UDT nationwide, primarily for substance use disorder and pain management providers. The multistate action alleged that claims Precision submitted to Medicaid were not medically reasonable and necessary for the diagnosis or treatment of an illness or injury or to improve the functioning of a malformed body member. Specifically, Precision allegedly developed and implemented a policy and practice of utilizing non-allowable blanket orders for UDT without any physician making an individualized determination that the UDT was medically necessary or reasonable for the particular patients for whom the tests were ordered. It was also alleged that Precision provided free point-of-care UDT cups to physicians in exchange for UDT referrals, in violation of the Anti-Kickback Statute.
