Quest Diagnostics pays $13M to settle kickback allegations involving NY Giants tickets

Quest Diagnostics has paid the federal government $13 million to settle a lawsuit alleging that it submitted false claims to Medicare and Medicaid through client referrals obtained in exchange for exclusive access to Giants games at MetLife Stadium.

The U.S. Attorney's Office for New Jersey said Quest was accused of "knowingly and willfully" enticing health care providers and other influential people with "valuable and exclusive" entertainment at MetLife from July 2013 to August 2022. The company allegedly submitted false claims for lab services paid for by Medicare and Medicaid programs in New York and New Jersey.

According to the settlement statement, clients received free tickets to Giants games, access to suites at MetLife Stadium, free food and alcohol, practice session viewings, and autograph opportunities. The Justice Department investigated Quest under the federal Anti-Kickback Statute, which prohibits benefiting by inducing referrals to federal health care programs.

U.S. Attorney Robert Frazer said "Kickbacks to referring providers, especially by lab companies, corrupt medical judgment, lead to unnecessary lab testing, cause providers to steer patients to labs that offer inducements, and squander taxpayer money."

The $13 million settlement did not determine liability on Quest's part, and the agreement did not rule out a future criminal probe. Quest, which sponsors the Giants training center, said it conducted the MetLife events legally and denied the allegations. Company spokesperson Wendy Best stated that "The Giants events were conducted transparently, and our Compliance Department took steps to monitor and oversee them."

Private whistleblowers filed the lawsuit, with investigation involvement from the FBI's Newark field office, the U.S. Attorney's Office in New Jersey, and the federal Department of Health and Human Services' Office of Inspector General. Quest signed a contract with the New York Giants in 2013, gaining access to suites at MetLife Stadium for marketing and hospitality benefits. Approximately $2.4 million of the settlement went to whistleblowers Gerard Abate, MD, Lori Anderson, and Douglas S. Rabin, MD, under the False Claims Act.

The settlement agreement does not establish liability for Quest, and the company maintains its innocence while entering into a corporate integrity agreement as part of the resolution.