Healthcare Company and Lab Pay $845K to Resolve Federal and State False Claims Act Allegations
(STL.News) U.S. Attorney John H. Durham and Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of the Inspector General, today announced that SECON OF NEW ENGLAND, LLC, d/b/a SECON LABORATORIES, and STERLING HEALTHCARE OPCO, LLC, d/b/a CORDANT HEALTH SOLUTIONS (collectively, “Cordant”) have entered into a civil settlement agreement with the federal and state governments and have paid $845,108 to resolve allegations that they violated the federal and state False Claims Acts.
Cordant Health Solutions, which is based in Denver, Colorado, provides healthcare testing and monitoring services nationwide, including laboratory services for drug testing. Cordant’s subsidiary, Secon Laboratories, is a laboratory located in Worcester, Massachusetts. Secon’s client, Crossroads, Inc., was a behavioral health residential treatment center located in New Haven, Connecticut. Many of the residents of Crossroads were enrolled in the Connecticut Medicaid program.
In 2015, Crossroads implemented a policy requiring its residents to submit to regular urine drug testing, largely for residential monitoring purposes. Crossroads ordered presumptive (screening) drug tests and definitive (confirmatory) drug tests for each resident weekly. In many cases, Crossroads ordered duplicative tests for its residents more than two times a week, and as often as three, four, or five times a week.