Poplar Bluff lab pays millions in healthcare fraud case settlement

A Poplar Bluff lab agrees to a multi-million dollar settlement in a federal Medicare fraud case. 

Gamma Healthcare Inc. in Poplar Bluff and three of its owners have agreed to pay a 13 point 6 million dollar settlement over alleged false claims to Medicare for lab tests that were not ordered by health care providers. 

The company and its owners are also excluded from participating in federal healthcare programs for the next 15 years. 

The payment settles the case of whistleblower claims that the company performed labs over and above what was called for by physicians who said they were expensive and not medically necessary. 

The Department of Justice investigated the case under the False Claims Act. 

The settlement does not mean the company is liable – but the whistleblower doctor will get more than 2 point three million dollars of the settlement.