Vermont Business Magazine The State of Vermont, and Burlington Laboratories, Inc. and Burlington Labs, LLC (together “Burlington Labs”), have reached an agreement settling an investigation by the Medicaid Fraud and Residential Abuse Unit of the Office of the Attorney General into whether Burlington submitted false claims or received overpayments from the Vermont Medicaid Program. Burlington Labs will pay $6.75 million to settle potential claims under the Vermont False Claims Act. “This settlement balances the ongoing needs for drug testing services in Vermont with ensuring proper billings for services rendered and safeguarding of state and federal monies,” said Attorney General William H. Sorrell.
Burlington Labs is an independent toxicology laboratory, headquartered in Burlington, Vermont. The settlement resolves an investigation into Burlington Labs’ Medicaid claims related to drug screening and certain confirmatory tests. The investigation revealed that from January 1, 2015, through June 30, 2015, Burlington Labs violated a number of Medicaid rules regarding such tests including by varying the charged amount submitted to Vermont Medicaid depending on the number of drugs tested. As a result of this practice, Burlington Labs received more than $12 million from the Vermont Medicaid program in calendar year 2015, after only receiving approximately $10 million over the previous five years combined. The increase in 2015 was not proportional to an increase in patients screened by Burlington Labs during that time period.
Under the settlement agreement, Burlington Labs will pay $6.75 million to the Vermont Medicaid program. The settlement agreement allows Burlington Labs to make payments over a seven-year period. The extended payment terms are intended to maximize Burlington Labs’ ability to continue operations, fulfill its mission, and properly compensate the Medicaid Program.
Pursuant to the settlement agreement, Burlington Labs has entered into a Corporate Integrity Agreement with the State that requires enhanced compliance measures, including independent review of a sample of its claims for up to five years. Burlington Labs will be required to return to Vermont Medicaid any overpayment identified and must also establish a compliance program designed to prevent or limit future false claims. Copies of the Settlement Agreement and the Corporate Integrity Agreement are available via the links below. Settlement Agreement Corporate Integrity Agreement
Source: Vermont AG 10.10.2016