HealthTrackRx is a clinical laboratory in Denton, Texas that provides a variety of diagnostic testing services. In 2018, the company was sued by the Department of Justice for allegedly paying kickbacks to doctors in exchange for ordering laboratory tests from HealthTrackRx. The lawsuit alleged that HealthTrackRx paid doctors disguised as “investment opportunities” or “consulting fees.”
Kickback Allegations
The DOJ alleged that HealthTrackRx paid doctors millions of dollars in kickbacks between 2014 and 2018. The lawsuit also alleged that HealthTrackRx used a sham investment model to disguise the kickbacks. Under this model, doctors were offered the opportunity to invest in HealthTrackRx, but they were not required to put up any money. Instead, HealthTrackRx gave doctors shares in the company based on the number of laboratory tests they ordered.
Impact on Patients
The DOJ alleged that the HealthTrackRx kickback scheme led to unnecessary testing and higher healthcare costs for patients. The lawsuit also alleged that the scheme compromised the quality of patient care, as doctors were ordering tests based on financial incentives rather than medical necessity.
Outcome of the Lawsuit
In 2022, HealthTrackRx agreed to pay $19 million to settle the DOJ lawsuit. The company also agreed to implement new compliance measures to prevent future kickback schemes.
Conclusion
The HealthTrackRx lawsuit is a reminder that kickback schemes can have a negative impact on patients and the healthcare system. The DOJ has made it clear that it will continue to prosecute companies and individuals who engage in kickback schemes.
FAQs
Q: What is a kickback scheme?
A: A kickback scheme is a type of fraud in which one party pays another party to influence their decisions. In the context of healthcare, kickback schemes can occur when a laboratory pays a doctor to order tests from that laboratory.
Q: Why are kickback schemes illegal?
A: Kickback schemes are illegal because they can lead to unnecessary testing, higher healthcare costs, and compromised patient care.
Q: What was the outcome of the HealthTrackRx lawsuit?
A: In 2022, HealthTrackRx agreed to pay $19 million to settle the DOJ lawsuit. The company also agreed to implement new compliance measures to prevent future kickback schemes.
Q: How can I protect myself from kickback schemes?
A: If you are concerned that your doctor may be engaging in a kickback scheme, you can ask them about their financial relationships with laboratories. You can also report any concerns to your state medical board.
Q: What should I do if I think I have been a victim of a kickback scheme?
A: If you think you have been a victim of a kickback scheme, you should contact your insurance company and state medical board. You may also be able to file a civil lawsuit against the laboratory or doctor involved in the scheme.
Q: How can I learn more about kickback schemes?
A: You can learn more about kickback schemes by visiting the Department of Justice website or the website of your state medical board.
References
- Department of Justice. Missouri and Texas Physicians and Medical Practices Agree to Pay Over $525,000 to Settle Kickback Allegations Involving Laboratory Testing.: https://www.justice.gov/opa/pr/missouri-and-texas-physicians-and-medical-practices-agree-pay-over-525000-settle-kickback
- Dallas News. Dallas lab company paid doctors kickbacks for drug screen referrals, using ‘sham investment model,’ feds say.: https://www.dallasnews.com/news/courts/2018/05/08/dallas-lab-company-paid-doctors-kickbacks-for-drug-screen-referrals-using-sham-investment-model-feds-say/
- HealthTrackRx. News.: https://www.healthtrackrx.com/news/
