DOJ Launches Criminal Investigation Into Alere’s Billing Practices
The diagnostic-testing company, which is in the middle of trying to sell itself to Abbott Laboratories, received a subpoena seeking information on its efforts to collect copayments from patients.
The Wall Street Journal:
Alere Faces Criminal Probe Over Medicare, Medicaid Billing
Federal investigators are seeking information about government-billing practices at Alere Inc., adding to a litany of woes at the diagnostic-testing company as it seeks to complete a deal to sell itself. The Justice Department’s criminal-fraud section sent Alere a subpoena recently seeking patient-billing records, according to people familiar with the matter. It asked for information about Alere’s efforts to collect copayments from patients, as well as forms submitted on their behalf to government programs such as Medicare, the people said. (Hoffman, Viswanatha and Rockoff, 7/27)
Abbott Has More Reason To Walk Away From Alere Deal
There's more evidence that Abbott Laboratories' pursuit of Alere, a health care diagnostics company, may have been a bad idea. Alere faces a federal criminal investigation over its Medicare and Medicaid billing practices, according to a report by the Wall Street Journal. News of the inquiry sent Alere's shares plunging nearly 29 percent Wednesday to $31.47 on the New York Stock Exchange. (Sachdev, 7/27)