Lynn lab to pay $8.5M settlement

A Lynn-based independent clinical laboratory will repay the state $8.5 million to settle charges of Medicaid overpayment and inappropriate referrals.

Attorney General Martha Coakley's office says Willow Street Medical Laboratory LLC billed Medicaid for urine drug and alcohol tests that were not properly ordered by a doctor or authorized prescriber. Instead they were often ordered for non-medical purposes.

Investigations also showed the laboratory made inappropriate payments to secure additional business from Medicaid, substance abuse treatment programs, halfway houses, shelters and sober houses.

An industrywide investigation into urine drug tests billed to the state Medicaid program revealed the violations.

Willow Street Laboratory will set up a program to ensure full compliance with state laws and Medicaid regulations. (AP)