SmithKline Beecham Clinical Laboratories (SBCL) was an American-based medical laboratory company that was acquired by Quest Diagnostics in 1999 for $1.3 billion.
Controversies
In 1989, SBCL had to pay a $1.5 million fine for illegal laboratory referral kickbacks.
In 1997, Operation LabScam forced SBCL to agree to pay a $325 million settlement for billing Medicare and Medicaid for tests that physicians were misled into believing were free, violating the 1863 False Claims Act.
In 1998, a phlebotomist at an SBCL facility in Palo Alto, California was exposed as reusing needles to save money. As a result, over 3,600 patients had to receive testing and counseling for HIV and hepatitis. The incident led to phlebotomy licensure in California.
References
- 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.
- "DOJ AND HHS HIGHLIGHT LATEST EFFORTS TO FIGHT FRAUD BY CLINICAL LABORATORIES". Justice.gov. February 24, 1997. Retrieved 17 February 2024.
- Michel, Robert (7 June 1999). "Palo Alto Needle Reuse Episode Widens in Scope". The Dark Report. Retrieved 17 February 2024.
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