Alere Faces Criminal Probe Over Medicare, Medicaid Billing
28 July 2016 - 7:10AM
Dow Jones News
Federal investigators are seeking information about
government-billing practices at Alere Inc., adding to a litany of
woes at the diagnostic-testing company, as it seeks to complete a
deal to sell itself.
The Justice Department's criminal-fraud section sent Alere a
subpoena last month seeking patient-billing records, according to
people familiar with the matter. It asked for information about
Alere's efforts to collect copayments from patients, as well as
forms submitted on their behalf to government programs such as
Medicare, the people said.
Federal law bars health-care companies from covering the
payments for patients insured by government programs like Medicare
and Medicaid, as such assistance is considered an illegal
kickback.
The Justice Department also is investigating whether Alere made
payments or delivered other items of value to doctors, the people
said.
An Alere spokeswoman had no immediate comment. A Justice
Department spokesman declined to comment.
Alere's toxicology unit, the subject of the probe, provides
drug-testing for employers and government bodies. It accounted for
one-quarter of the company's $2.57 billion revenue in 2014. Alere
specializes in tests for HIV, tuberculosis and the presence of
drugs and other toxins. The tests can be administered at the point
of care, giving quick results for doctors and first responders.
Alere in February agreed to be acquired by Abbott Laboratories
for nearly $5 billion, a transaction that is yet to close.
Write to Liz Hoffman at liz.hoffman@wsj.com, Aruna Viswanatha at
Aruna.Viswanatha@wsj.com and Jonathan D. Rockoff at
Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
July 27, 2016 16:55 ET (20:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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