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Memphis-based lab testing company to pay $900k settlement

MEMPHIS, Tenn. — A Tennessee lab testing company has agreed to pay $900,000 to the federal government to settle allegations that it performed diagnostic tests that were not medically necessary.

The agreement between the Poplar Healthcare and the federal government was unsealed Monday in federal court in Rhode Island. Under its terms, about $200,000 of that amount will be given to a doctor who blew the whistle.

The Memphis-based company did not admit wrongdoing, but agreed the government will be able to recoup the cost of the tests.

Federal prosecutor say an investigation found that Poplar promoted the test as a way to diagnose a condition known as “mast cell enterocolitis.”

They say the promotion was not supported by adequate scientific evidence and not consistent with Food and Drug Administration requirements.