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

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]

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References

  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.