Wake Forest-based Radeas settles for $3.6 million over Medicaid billing issues

A local company that provided quick COVID-19 test results for thousands over the past three years is accused of over-billing Medicaid by millions of dollars.

Wake Forest-based Radeas Labs has been prolific when it comes to COVID testing. As of February 2022, they had been awarded $120 million in federal relief money by Wake County to perform COVID-19 testing.

But investigators say long before the pandemic, Radeas was performing unnecessary tests at taxpayers’ expense.

The North Carolina attorney general says that between Jan. 1, 2016, and Sept. 30, 2021, Radeas was doing drug testing and performing two tests on each sample instead of one. Doing that second, medically unnecessary test, meant Radeas got extra money from Medicaid that it shouldn’t have been getting.

Now, the company has settled with the Attorney General’s Office and will pay a $3.6 million fine.

Radeas gave WRAL News this statement regarding the settlement: "Radeas began working closely with the NC Departments of Justice and Health and Human Services as soon as the issue was brought to its attention. 'I appreciate the NC DOJ and HHS’s assistance in this very complicated matter and am grateful we have been able to work with them to ensure ongoing compliance,' said Dr. Phil Radford. 'We will continue to work closely with our expanded compliance team and look forward to continue supporting our customers and the communities we serve.' Radeas denies all allegations of any wrongdoing or any false claim."

In that agreement, Radeas also admitted to giving kickbacks to third-party sales representatives based on the number of referrals made to Radeas. Officials allege that violated the Anti-Kickback Statute and the False Claims Act.

Radeas entered into a five-year Corporate Integrity Agreement with federal officials to review for compliance with the Anti-Kickback Statute. An independent review organization will also review Radeas’ claims to federal health care programs annually.