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Cancer Testing

Washington, DC: (Oct-30-07) The US Government and the Justice Department brought charges against Dianon Systems Inc., alleging that the company violated the False Claims Act by wrongfully charging Medicare and TRICARE for certain tests it performed. Dianon, a reference lab located in Stratford, CT, specializes in conducting tests to detect and stage various types of cancer. Sources claimed that doctors obtain tissue or liquid specimens from patients and refer the specimens to Dianon to determine whether they contain cancer cells, and if so, the stage of the disease. Records show that the original suit against Dianon was filed by Dr. James Tiesinga, a pathologist formerly employed by the company. He filed the complaint against the company on behalf of the United States under the qui tam or whistleblower provisions of the False Claims Act. He claimed that Dianon billed for medically unnecessary tests in that it performed 26 flow cytometry tests on every sample sent to the company for diagnosis regardless of whether all 26 were medically necessary for a particular patient.

As part of a settlement reached, Dianon Systems Inc. has agreed to pay the United States $1.5 million to resolve allegations. It is estimated that Dr. Tiesinga will receive $300,000 as his share of the proceeds of the settlement. [PACIFIC NEWS CENTER]

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Published on Oct-31-07


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