Healthcare Law, Stark Law (Self-Referrals), Toxicology

Defending Toxicology Labs In Stark Law Investigations

Dr. Nick Oberheiden, Esq.
www.healthcare-fraud-defense.com
(214)-692-2171
Including Weekends

Current Toxicology Laboratory Investigations

Recently, toxicology laboratories have faced increased scrutiny from federal investigators looking for improper relationships with their referring physicians. Toxicology laboratories with close ties to drug treatment centers are receiving particular attention regarding referrals for urine testing.

In February 2016, federal authorities began investing a Dallas-area pharmacy whose owners had a close connection to a recently established toxicology laboratory for potential violations of the Stark Law. http://www.dallasnews.com/investigations/20160205-north-texas-pharmacy-in-federal-probe-is-accused-of-paying-kickbacks-to-doctors.ece

In October 2015, a nationwide laboratory that provides toxicology testing paid $256 million to settle numerous charges of healthcare fraud including allegations that it violated the Stark Law by providing free drug test cups to physicians in exchange for the physicians’ promise to refer the samples collected back to the laboratory. https://www.justice.gov/usao-ma/pr/millennium-laboratories-pay-256-million-resolve-false-billing-and-kickback-claims

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Amanda Marshall

Former U.S. Attorney

Local Counsel

Joe Brown

Former U.S. Attorney

Local Counsel

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Aaron L. Wiley

Former DOJ attorney

Local Counsel

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

Stark Law Explained

The Physician Self-Referral Law (“Stark Law“) prohibits a physician from making a referral for certain designated health services to an entity in which the physician or an immediate family member of the physician has an ownership interest, investment interest, or a compensation arrangement unless an exception applies. The Stark Law applies exclusively to Medicare and Medicaid. Further, the Stark Law only applies to referrals to the following Designated Health Services, as specified in the statute:

Clinical laboratory services
Radiology services, including magnetic resonance imaging, computerized axial tomography scans, and ultrasound services
Radiation therapy services and supplies
Durable medical equipment and supplies
Parental and enternal nutrients, equipment, and supplies
Prosthetics, orthotics, devices, and supplies
Home health services
Outpatient prescription drugs
Inpatient and outpatient hospital services
Occupational therapy
Physical therapy services (and related services such as pathology therapy)

The penalties for Stark Law violations are civil in nature and vary in degree depending on the specific circumstances of the case. To begin with, Medicare or Medicaid can withhold payment for services provided in violation of the Stark Law. Furthermore, irrespective of intent, a provider will be required to pay back any monies received from Medicare or Medicaid that were paid for services provided in violation of the Law. Providers that were found to have knowingly violated the Stark Law could also face civil monetary penalties and exclusion from federal healthcare programs.

Toxicology Representations

Oberheiden, P.C. is a healthcare fraud defense law firm that represents toxicology laboratories, healthcare providers, and business owners in Stark Law, False Claims Act, and government investigations across the country. Our team consists of former Department of Justice prosecutors and experienced defense counsel. Our profound understanding of all nuances of the Stark Law and other relevant healthcare laws has allowed us time after time to convince the government to stop its investigations against our clients. Central element of our past defense successes is the introduction of exceptions and carve outs that render otherwise prohibited conduct under the Stark Law completely legal and permissible.