NEXT Bio-Research Services LLC, operating as NEXT Molecular Analytics, has agreed to pay at least $758,000 to resolve allegations that it violated the False Claims Act.
The settlement ends a federal investigation into claims that the lab offered illegal kickbacks to physicians and marketers to secure lucrative test referrals.
Court documents show that the Department of Justice alleged NEXT disguised payments to doctors in Texas and Arkansas as “consulting” and “medical director” fees. Prosecutors said these payments were actually incentives for physicians to order NEXT’s lab tests, which were then billed to federal health programs, including Medicare, Medicaid, and TRICARE.
The government also claimed the lab paid commissions to independent contractor marketers based on the volume and value of referrals they generated. The Anti-Kickback Statute prohibits such payments to ensure medical decisions are made based on patient needs rather than personal profit.
The allegations were initially raised by whistleblowers Sunil Wadhwa and Ken Newton under the qui tam provisions of the False Claims Act. The two will receive about $113,700 from the settlement.
As part of the agreement, NEXT has committed to cooperating with ongoing investigations into other parties involved in the alleged schemes.
The claims resolved in this settlement are allegations only, and no determination of liability has been made.
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