Whistleblower Lawsuit Against Nursing Home Lab and X-Ray Company Settled for $17.5 Million

A nationwide third-party provider of laboratory and X-ray needs to nursing homes settled a whistleblower lawsuit for $17.5 million, the U.S. Department of Justice announced.

The company is Kan-Di-Ki LLC, which does business as Diagnostic Laboratories and Radiology. The Justice Department claimed that the company offered discounted Medicare Part A services to nursing homes which decreased their costs and maximized profits. In return, the nursing homes made referrals to the company for outpatient services covered by Medicare Part B and the state Medicaid program. The final piece of the transaction was the overcharging the company did for the programs in order to make up for the discounts it was giving the nursing home, according to the lawsuit.

The company commented that it settled only to avoid time and costs and does not admit liability. Under the settlement, the two whistleblowers who worked for the company will receive about $3.8 million. For more, read the story.

Robert W. Carter, Jr. is a Virginia attorney whose law practice is dedicated to protecting the rights of the victims of nursing home and assisted living neglect and abuse in Richmond, Roanoke, Norfolk, Lynchburg, Danville, Charlottesville, and across Virginia.

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