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Quest Pays $241M to End California Medi-Cal Complaint

Quest Diagnostics Inc., California’s largest provider of medical laboratory testing, agreed to pay $241 million to settle state claims that it overcharged California’s medical program for the poor, Attorney General Kamala Harris said in a May 19 settlement announcement that was inadvertently reposted temporarily today on her web site.

The accord is the largest recovery in the history of California’s False Claims Act, Harris said. The settlement resolved a 2005 lawsuit filed by a whistle-blower alleging that Madison, New Jersey-based Quest overcharged the Medi-Cal program for more than 15 years and gave kickbacks in the form of discounted or free testing to doctors, hospitals and clinics that referred patients to the labs, Harris said.