For Immediate Release - September 10, 2010

AG Coakley's Office Recovers More Than $500,000 From Clinical Laboratory to Settle Allegations of Medicaid Fraud

BOSTON - Clinical Science Laboratory, Inc. ("Clinical Science"), of Mansfield, has agreed to pay $525,000 to the Commonwealth to resolve allegations it billed Medicaid for urine drug tests which were not properly ordered by a doctor or other authorized provider, and were inappropriately ordered for purposes not covered by Medicaid.

The settlement is the result of an ongoing industry-wide investigation by Attorney General Martha Coakley's Medicaid Fraud Division into urine drug tests billed by independent clinical laboratories to the state Medicaid program.

"Overbilling the state's Medicaid Program for unauthorized testing takes health care resources away from the people that need it most," said AG Coakley. "We will continue to work with our state and federal partners to police abuse of the program that so many people depend on."

The Attorney General's investigation found that between 2004 and 2009, Clinical Science billed Medicaid for unauthorized urine drug tests. These alleged violations of state law and Medicaid rules and regulations resulted in significant overpayments to Clinical Science.

In addition to reimbursing state taxpayers $525,000, Clinical Science has also agreed to comply with all state laws and Medicaid regulations in the future.

In 2009, Attorney General Coakley's Office secured $51.6 million in Medicaid fraud recoveries, breaking the office's previous recovery record, set in 2008, by $4.7 million and marking the third consecutive year of increased recoveries. Approximately $125 million has been returned to the state Medicaid program by the Medicaid Fraud Division during Attorney General Coakley's three years in office.

This matter was investigated by Investigators Joseph Shea and Donna Mitchell and by Assistant Attorneys General Michael Ahearn and Toby Unger, all of Attorney General Martha Coakley's Medicaid Fraud Division, with assistance from MassHealth.

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