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The United States Attorney’s Office for the Eastern District of New York has issued a press release stating that Bostwick Laboratories, Inc. (Bostwick) has agreed to pay a $503,668 settlement related to allegations that it made illegal payments to physicians in order to induce referrals for laboratory testing services. The Office of Inspector General investigated a whistleblower complaint made by Robert Gluck, M.D., a urologist approached by Bostwick to participate in a study of the PCA3Plus urine assay. In order to receive payment for participation in the study, physicians were allegedly required to send to Bostwick the PCA3Plus assay specimens, as well as prostate biopsy samples which may have otherwise gone to other laboratories for testing. Bostwick then billed Medicare and Tricare for the prostate biopsies, as well as the PCA3Plus assays which the government alleged were not medically necessary because the prostate biopsy is the “gold standard” for prostate cancer detection. The settlement does not involve an admission of guilt by Bostwick.

For more information, please contact:

Bridget K. Cougevan

Richard S. Cooper

Jane Pine Wood

McDonald Hopkins has a large and diverse healthcare practice, which is national in scope. The firm represents a wide variety of healthcare providers, facilities, vendors, technology companies and associations. Our diverse experience enables us to give our clients a unique perspective on the issues that may confront them in the rapidly evolving healthcare environment.