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New Jersey Lab and CEO to Pay Over $13 Million in Healthcare Fraud Settlement
RDx Bioscience Inc. and CEO Eric Leykin settle for alleged kickbacks and unnecessary medical testing, marking a significant healthcare fraud resolution in New Jersey.
Morristown, NJ – In a major healthcare fraud case, RDx Bioscience Inc., a Kenilworth-based clinical laboratory, along with its owner and CEO, Eric Leykin, have consented to a $13.25 million settlement over accusations of illegal kickbacks and unnecessary medical testing. U.S. Attorney Philip R. Sellinger announced the agreement, emphasizing the government's commitment to combating healthcare fraud.
The settlement comprises $10.32 million to the federal government and an additional $2.93 million to the state of New Jersey. This resolution addresses allegations under the False Claims Act involving RDx's financial schemes that purportedly influenced healthcare providers' decisions and led to unnecessary testing at the expense of taxpayer dollars.
“Kickbacks have no place in our healthcare system. Patients need to trust that health care referrals are made in their best interests, not in the interests of lining someone else’s pockets. We have pursued and will continue to pursue laboratories that enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers." said US Attorney Sellinger.
The allegations span from 2017 to 2023, involving various methods of illicit kickbacks intended to boost referrals for RDx's laboratory tests. These methods ranged from paying commissions and disguised consulting fees to providing specimen collection fees as inducements.
Special Agent in Charge Naomi Gruchacz of the HHS Office of Inspector General highlighted the deceptive nature of these payments, violating the Anti-Kickback Statute designed to protect medical decision-making from improper financial influences.
In addition to the kickback allegations, RDx and Leykin were accused of submitting or causing false claims for non-essential or duplicate laboratory tests. These practices not only violated federal healthcare program regulations but also raised concerns about the necessity and efficiency of the tests conducted.
The settlements, resulting from a collaborative effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, underscore the ongoing focus on healthcare fraud. Assistant U.S. Attorney Kruti Dharia and Senior Trial Counsel Christopher Terranova represented the government in these matters.
While the settlements resolve the allegations, it's important to note that there has been no determination of liability. This case serves as a reminder of the government's vigilance in addressing healthcare fraud, encouraging the public to report any suspicions of fraud or abuse to the Department of Health and Human Services.
“Regardless of how they are disguised, kickbacks for laboratory referrals are illegal and can corrupt medical providers’ decision making and subject patients to expensive and unnecessary testing,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division.
