Florida Laboratory Agrees to Pay $9.8 Million to Resolve False Claims Act Liability Over Improper Referral Arrangements

Florida-based NeoGenomics Laboratories Inc. has agreed to pay $9,813,260 to resolve allegations that it violated the False Claims Act by providing below fair market value consulting services to health care providers in exchange for patient referrals. The settlement, announced by the Justice Department, resolves claims that the company engaged in improper financial arrangements that violated both the Anti-Kickback Statute and the Stark Law.

According to the government, NeoGenomics operated a Laboratory Clinical Initiative program through which it provided consulting services to 28 health care providers seeking to establish in-house diagnostic capabilities. The United States alleged that the company offered these services for less than fair market value specifically to induce the providers to refer clinical laboratory tests to NeoGenomics. The government further alleged that NeoGenomics entered into agreements with independent consultants whose compensation varied based on the volume or value of referrals they generated. These arrangements resulted in the submission of claims to federal health care programs in violation of federal law.

Notably, NeoGenomics self-disclosed this conduct to the United States, cooperated fully with the investigation, and took significant remedial measures—including ending the consulting agreements, terminating responsible employees, and providing extensive documentation to assist investigators. The company received credit for its cooperation in connection with the settlement. This case reflects the government’s sustained commitment to combating healthcare fraud, particularly arrangements where financial incentives—not patient care—drive medical decision-making. The Justice Department also emphasized that self-disclosure and cooperation can help mitigate consequences for companies that come forward voluntarily.