A Florida lab owner has been charged with over $50 million in healthcare fraud related to fraudulent genetic cancer screening tests. Daniel Hurt, 48, Fort Lauderdale, Florida, is charged by information with one count of conspiracy to commit healthcare fraud.
According to documents filed in this case and statements made in court: Hurt owned several clinical laboratories that conducted or arranged for a variety of medical tests. Hurt paid kickbacks and bribes to various entities who supplied referrals and orders for genetic cancer screening tests (CGX) for Medicare and other healthcare benefit program beneficiaries, without regard to medical necessity. The laboratories submitted claims for payment to Medicare for these CGX tests. Medicare reimbursed the laboratories without knowing that the services were not medically necessary or were procured through the payment of kickbacks.
From January 2019 to October 2021, Hurt, through the laboratories, submitted or caused to be submitted approximately 350,000 claims to Medicare, including approximately 8,700 claims for beneficiaries residing in New Jersey. Hurt paid kickbacks to entities who supplied referrals for each CGX test that was billed to Medicare and other healthcare benefit programs. To conceal the payments of bribes, Hurt and the suppliers entered into sham contracts to make it appear that the suppliers were engaged in, and being paid for, legitimate marketing and referral services. The scheme resulted in Medicare paying the laboratories at least $53.3 million for CGX test claims. Hurt received at least $26.9 million from the Medicare reimbursements.
