SmithKline Beecham Clinical Laboratories

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SmithKline Beecham Clinical Laboratories (SBCL) was an American-based medical laboratory company that was acquired by Quest Diagnostics in 1999 for US$1.3 Billion.

Controversies[edit]

In 1989, SBCL had to pay a record $1.5 million fine for illegal laboratory referral kickbacks.[1]

In 1997, a False Claims Act allegation under Operation LabScam led SBCL to a record $325 million settlement for billing Medicare & Medicaid while misleading the physicians who purportedly "ordered" the tests into thinking that the tests would be performed for free.[2]

In 1998, an on-the-job trained phlebotomist at an SBCL Palo Alto draw station was found to re-used needles in an effort to save supplies and run a cost-efficient lab. Over 3600 patients had to receive HIV and hepatitis testing, and counseling. The incident led to phlebotomy licensure in California.[3]

References[edit]

  1. ^ Archives, L. A. Times (29 December 1989). "SmithKline Lab to Pay Record $1.5-Million Fine : Health Care: The firm allegedly violated a federal law that prohibits payments to doctors to encourage referrals of Medicaid and Medicare patients". Los Angeles Times.
  2. ^ "DOJ AND HHS HIGHLIGHT LATEST EFFORTS TO FIGHT FRAUD BY CLINICAL LABORATORIES". Justice.gov. February 24, 1997. Retrieved 17 February 2024.
  3. ^ Michel, Robert (7 June 1999). "Palo Alto Needle Reuse Episode Widens in Scope". The Dark Report. Retrieved 17 February 2024.