Quest Diagnostics pays $13M to settle kickback allegations involving NY Giants tickets

Quest Diagnostics paid over $13 million to resolve allegations that it provided health care providers and executives illegal kickbacks in the form of New York Giants tickets and access to exclusive events, according to the U.S. Attorney’s Office of New Jersey.

U.S. Attorney Robert Frazer on Friday said the clinical lab operator, based in Secaucus, NJ, offered clients Giants suite seats and access to training camp in exchange for business referrals.

Frazer said Quest violated the Anti-Kickback Statute, which prohibits offering, soliciting, or taking payment to encourage the use of services or items covered by Medicare, Medicaid and other federally funded healthcare programs.

“Kickbacks to referring providers, especially by lab companies, corrupt medical judgment, lead to unnecessary lab testing, cause providers to steer patients to labs that offer inducements, and squander taxpayer money,” Frazer said in a statement.

The settlement resolves allegations that, between July 25, 2013 and Aug. 3, 2022, Quest violated the kickback statute and that the firm submitted false claims for lab services that Medicare and New York and New Jersey Medicaid paid for, officials said.

In 2013, Quest entered into a naming rights and sponsorship agreement with the New York Giants. As part of this agreement, the Giants provided suites to Quest for home games at MetLife Stadium. The firm also gained various marketing, commercial programming and hospitality benefits, according to prosecutors.

Quest then provided clients access to Giants home game suite seats, VIP training camp, draft “chalk-talk” presentations, and NFL scouting events for free, according to officials.

After inviting clients to the games and events, Quest calculated the revenue it received from them for up to one year after entertaining them, officials said. In addition, the company then billed Medicare, as well as New York and New Jersey Medicaid for claims for lab testing that were referred from the clients that they entertained, prosecutors said.

The New York Giants organization, which is based in New Jersey, did not immediately respond to a request for comment.

Under the settlement Quest is also required to enter into a five-year corporate integrity agreement with the Department of Health and Human Services-Office of Inspector General, requiring the firm to obtain an independent review organization to audit the company.

A spokesperson for Quest said the firm denies any allegations of wrongdoing or violation of the law, but agreed to the settlement to “put the matter behind us.”

“We adhere to a policy of strict compliance with the laws and regulations governing our business,” spokesperson Amanda Rivera said in a statement. “Since last year, we have shared information about this settlement, which includes a Corporate Integrity Agreement, with the public through our regulatory filings. In many respects, the CIA mirrors our existing rigorous compliance program, and we have been complying with its requirements.”