Indianapolis, November 25, 2025
Patients Choice Laboratories, based in Indianapolis, has agreed to a $9.62 million settlement regarding allegations of submitting false claims to Medicare and engaging in kickback schemes. The U.S. Department of Justice announced the settlement, which does not imply any admission of wrongdoing by the laboratory. This case emphasizes the importance of adherence to healthcare regulations and the ongoing battle against healthcare fraud.
Indianapolis Lab Agrees to $9.6 Million Settlement Over Medicare Fraud Allegations
Indianapolis, Indiana – Patients Choice Laboratories (PCL), a diagnostic laboratory based in Indianapolis, has agreed to pay $9.62 million to settle allegations of submitting false claims to Medicare and engaging in kickback schemes. The U.S. Department of Justice announced the settlement on November 24, 2025. PCL denies any wrongdoing in the case.
Details of the Allegations
The government alleged that between December 2020 and May 2022, PCL knowingly submitted claims to Medicare for respiratory pathogen panels (RPPs) that were either medically unnecessary or obtained through illegal kickbacks. Specifically, PCL was accused of:
- Billing for Medically Unnecessary Tests: Submitting claims for RPPs that were not medically necessary.
- Kickback Arrangements: Paying commissions to independent sales representatives based on the volume or value of referrals, in violation of the Anti-Kickback Statute.
Settlement Agreement
Under the terms of the settlement, PCL will pay $9.62 million to the United States to resolve these allegations. The settlement does not constitute an admission of liability by PCL. The company has agreed to comply with all applicable laws and regulations moving forward.
Background on the Case
The allegations against PCL were part of a broader effort by the U.S. Department of Justice to combat healthcare fraud. Similar cases have resulted in significant settlements, including a $345 million settlement by Community Health Network in December 2023 for violations of the False Claims Act.
Implications for the Healthcare Industry
This case highlights the ongoing scrutiny of healthcare providers’ billing practices and the importance of compliance with federal regulations. The settlement serves as a reminder to healthcare organizations to adhere strictly to legal and ethical standards to maintain the integrity of the healthcare system.
Key Features of the Case
| Feature | Details |
|---|---|
| Settlement Amount | $9.62 million |
| Allegations | False claims to Medicare for medically unnecessary tests; kickback arrangements |
| Settlement Date | November 24, 2025 |
| Regulatory Body Involved | U.S. Department of Justice |
| Company’s Stance | Denies any wrongdoing |
Frequently Asked Questions (FAQ)
What is the settlement amount agreed upon by Patients Choice Laboratories?
The settlement amount agreed upon by Patients Choice Laboratories is $9.62 million.
What were the allegations against Patients Choice Laboratories?
The allegations against Patients Choice Laboratories included submitting false claims to Medicare for medically unnecessary respiratory pathogen panels and engaging in kickback arrangements with independent sales representatives.
Does the settlement indicate an admission of liability by Patients Choice Laboratories?
No, the settlement does not constitute an admission of liability by Patients Choice Laboratories.
What is the significance of this case in the healthcare industry?
This case underscores the importance of compliance with federal regulations and the ongoing efforts to combat healthcare fraud, serving as a reminder to healthcare organizations to adhere to legal and ethical standards.
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Author: STAFF HERE INDIANAPOLIS WRITER
The INDIANAPOLIS STAFF WRITER represents the experienced team at HEREIndianapolis.com, your go-to source for actionable local news and information in Indianapolis, Marion County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Indianapolis 500, Indy Jazz Fest, and the Indiana State Fair. Our coverage extends to key organizations like the Indy Chamber and Visit Indy, plus leading businesses in motorsports and healthcare that power the local economy such as Indianapolis Motor Speedway and IU Health. As part of the broader HERE network, we provide comprehensive, credible insights into Indiana's dynamic landscape.
