NEXT Bio-Research Services LLC agreed to pay at least $758,000 to resolve False Claims Act allegations that it paid illegal kickbacks disguised as consulting fees and medical director fees to doctors in Texas and Arkansas to induce laboratory test referrals.

NEXT Bio-Research Services — Kickback Settlement (2018–2023)

Outcome: NEXT Bio-Research Services LLC agreed to pay at least $758,000 to resolve False Claims Act allegations that it paid illegal kickbacks disguised as consulting fees and medical director fees to doctors in Texas and Arkansas to induce laboratory test referrals.

NEXT Bio-Research Services LLC, doing business as NEXT Molecular Analytics, operated a clinical laboratory in Chester, Virginia. The company allegedly paid doctors thousands of dollars in kickbacks disguised as consulting fees and medical director fees to induce them to order NEXT laboratory tests. The company also paid commissions based on the volume and value of referrals to certain independent contractor marketers.

These arrangements violated the Anti-Kickback Statute, which prohibits offering or paying remuneration to induce referrals for services covered by federal healthcare programs. The resulting laboratory test claims submitted to Medicare were tainted by the kickback arrangements, constituting false claims under the False Claims Act.

NEXT agreed to pay at least $758,000 to the United States to resolve the allegations.

Primary Source: DOJ: Virginia Laboratory to Pay $758,000 to Settle Allegations of Kickbacks to Doctors and Marketers