ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, January 12, 1993                   TAG: 9301120078
SECTION: VIRGINIA                    PAGE: B4   EDITION: NEW RIVER VALLEY  
SOURCE: 
DATELINE: RICHMOND                                LENGTH: Short


VA. MEDICAID AGENCY GETS PART OF SETTLEMENT

The agency that operates Virginia's Medicaid program has received $308,308 as its share of a nationwide settlement against one of the country's largest clinical laboratory companies, Attorney General Mary Sue Terry said Monday.

The company, National Health Laboratories Inc., of La Jolla, Calif., pleaded guilty to a felony last month in federal court in California to crimes involving false claims submitted to the CHAMPUS and Medicaid programs.

The company was targeted for a practice known as bundling. That's when several groups of blood tests are grouped together for billing - whether or not all the tests were medically necessary or requested.

As part of a settlement, the company agreed to pay back about $110 million to government-run insurance programs across the country. In Virginia, the money was returned Monday to the Department of Medical Assistance Services, which operates the state's Medicaid program, Terry said. - Associated Press



by Bhavesh Jinadra by CNB