Lab, state settle health care fraud case

CHARLESTON (AP) — A Massachusetts clinical testing lab has agreed to pay West Virginia more than $4 million to settle a health care fraud case.

U.S. Attorney Booth Goodwin announced the settlement with Calloway Laboratories, Inc. on Wednesday.

Goodwin says in a news release that the $4.67 million settlement is the largest health care fraud recovery by a U.S. attorney’s office in West Virginia.

Goodwin says a state and federal investigation found that Calloway Labs performed a medical review with urine drug screens that isn’t covered by Medicare or West Virginia’s Medicaid program. The company submitted claims for the review using a code for pathology services, which are covered.

A spokesman for Calloway Laboratories says the company plans to issue a statement regarding the settlement.

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