TETERBORO, N.J., Jan. 3 /PRNewswire/ -- Quest Diagnostics Incorporated
(NYSE: DGX), the nation's leading provider of diagnostic testing, information
and services, announced that it has agreed to refund $13.08 million to federal
and certain state government health care programs. This resolves previously
disclosed claims related to certain billing and marketing practices at several
former facilities of the company's Nichols Institute unit that occurred prior
to its acquisition by Corning Incorporated, the former parent of Quest
Diagnostics, in 1994. The cost of the settlement will be covered under Quest
Diagnostics' indemnification agreement with Corning.
"We strongly deny the government's contentions, and are settling this case
to put behind us a matter that traces its origins to 1989," said Surya N.
Mohapatra, President and Chief Operating Officer of Quest Diagnostics. "We
believe that the practices in question were similar to those identified by
government officials as common industry practices. Moreover, the practices
were ended shortly after Quest Diagnostics purchased Nichols Institute in
1994. As the nation's leading provider of diagnostic testing, information and
services, Quest Diagnostics has a culture of total regulatory compliance,
which the government has referred to as 'a model for the industry.'"
The government claimed that Nichols Institute routine testing laboratories
located in five states performed and billed certain laboratory tests, included
in certain groupings of tests that were ordered for patients by physicians,
which the government subsequently considered to be "medically unnecessary."
Quest Diagnostics had an active compliance program at the time Nichols
Institute was acquired and instituted programs and measures to conform Nichols
Institute's practices with the company's understanding of legal and regulatory
requirements and policies.
Quest Diagnostics is the nation's leading provider of diagnostic testing,
information and services with annualized revenues of more than $3 billion.
The testing performed on human specimens helps doctors diagnose, treat and
monitor disease; enables employers to detect workplace drug abuse; and
supports pharmaceutical and biotechnology companies in clinical trials of new
therapeutics worldwide. Quest Informatics analyzes laboratory and other
medical data to help health care providers improve the care of patients.
Additional company information can be found on the Internet at:
http://www.questdiagnostics.com.
The statements in this press release which are not historical facts or
information may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause the outcome to be
materially different. Certain of these risks and uncertainties are listed in
the Quest Diagnostics Incorporated 1999 Form 10-K and subsequent filings.
SOURCE Quest Diagnostics
CONTACT: Media - Julie Clarkson, 201-393-5825, or Investors - Cathy
Doherty, 201-393-5030, both for Quest Diagnostics/