By: Richard L. Smith
Quest Diagnostics, headquartered in Secaucus, has agreed to pay more than $13 million to settle federal allegations that the company provided healthcare professionals with luxury entertainment experiences, including New York Giants games, in exchange for patient referrals.
According to U.S. Attorney Robert Frazer, Quest allegedly offered free access to luxury suites at MetLife Stadium, along with food, alcohol, VIP training camp experiences and exclusive events featuring former Giants players.
Federal authorities said the alleged scheme operated between July 2013 and August 2022 and involved healthcare providers and executives who could direct laboratory testing business to Quest.
Investigators alleged that Quest specifically targeted decision-makers at valuable client accounts and monitored revenue generated after those individuals attended the events.
The company subsequently billed Medicare and Medicaid programs in New Jersey and New York for laboratory services connected to those referrals, authorities said.
As part of the civil settlement, Quest will pay $13,014,576 plus interest and enter a five-year corporate integrity agreement requiring additional independent oversight of its business practices.
The settlement resolves allegations and does not establish that Quest admitted wrongdoing.
The investigation involved the U.S. Attorney’s Office for the District of New Jersey, the FBI and the U.S. Department of Health and Human Services Office of Inspector General.