Learn to not make the Same Mistake Twice
In the 1990`s this facility was at the center of a probe called `Operation Labscam` that investigated the fraudulent billing of Medicare. This investigation was initiated by the U.S. Attorney`s Office in San Diego for a nationwide crackdown on fraud in the health care system. The charges claimed that the company (along with other facilities) routinely submitted false claims to Medicare and Medicaid agencies for testing that were never ordered by physicians for their patients.
In 1992, National Health Laboratories was the first of these facilities to be prosecuted by the federal government in this operation. National Health Laboratories had reported revenues of over $720 million USD, but with only $40 million being reported in earnings, raising a red flag with federal investigators. Eventually National Health Laboratories came to a settlement with the federal government that was $111 million USD that year and collectively amounted to $173 million USD. Three years later National Health Laboratories merged with Roche Biomedical Laboratories Inc. and became Laboratory Corporation of America Holdings aka LabCorp.
Apparently, not making the same mistake twice is a lesson LabCorp hasn`t quite yet learned.