Alere hit with subpoena for Medicare billing practices
Investors were temporarily shaken after news of a federal investigation into Medicare billing practices. Alere received a U.S. Department of Justice subpoena addressed to Alere Toxicology Services on July 1, 2016. The subpoena seeks records related to Medicare, Medicaid and Tricare billings dating back to 2010 for patient samples tested at the company’s Austin, Texas pain management laboratory.
The company quickly released a statement stating it is fully cooperating with the investigation.
For the first nine months of 2015, Medicare, Medicaid and Tricare billings at the Austin pain management laboratory accounted for significantly less than 1% of Alere’s total revenues.
Headquartered in Waltham, Massachusetts, Alere focuses on rapid diagnostics for cardiometabolic disease, infectious disease and toxicology.