Monthly Archives: May 2011

Qwest Diagnostics Lab To Pay California $214 Million For Overages

Qwest Diagnostics, which has a national contract with Medicare and Medicaid, reportedly over charged the state of California more than $200 million for services not rendered. Reportedly, the state of California was overcharged for approximately 15 years. Medi-Cal, the state of California’s version of the nationalized Medicaid program, paid out hundreds of millions of dollars to Qwest Diagnostics.

According to court records, officials at Qwest Diagnostics solicited California doctors, hospitals and medical centers and paid them to refer patients to their labs for outpatient testing. Some of the tests ordered by affiliated physicians were later deemed medically unnecessary. Although the state has not announced any plans to prosecute any of the doctors or medical centers associated with Qwest Diagnostic’s fraudulent billing practices, some have lost their medical licenses.

California Attorney General Kamala Harris is happy with the results of the settlement. It is the largest settlement involving a state contracted medical center in California’s history. Harris believes that the ruling will send a strong message to health care company executives. As the number of fraudulent medical claims rise each year, investigators were startled when they discovered that many medical companies were directly involved.

Qwest Diagnostics is to pay the $214 million settlement to the state of California in the coming months. Because this case was settled out of court it is unlikely that Qwest Diagnostics will appeal. Several other major lab companies are currently under investigation by the state of California. LabCorp is expected to go to trial in 2012 to face similar charges.

Makers Of Four Loko Sued For Wrongful Death In Washington DC

Fifteen year old John Donald Rupp III was struck and killed by a car after consuming two cans of Four Loko. The family of the deceased teen claim that the makers of the caffeine infused alcohol beverage are civilly liable for his death. While the lawsuit does not address how the underage teen was able to get access to the heavily marketed alcoholic energy drink, several states across the nation have banned the sale of Four Loko. Phusion Projects, the makers of Four Loko, voluntarily agreed to alter their product by completely removing the caffeine. Before changes were made, a 24 ounce can of Four Loko contained 12% alcohol and a high concentration of caffeine and other stimulants.

Attorneys for Phusion Projects will likely defend their clients by informing the courts of exactly how the late Rupp, III, was able to get two cans of the alcoholic beverage. Allegedly, Rupp, III, purchased the alcoholic drink from a nearby convenience store before continuing on to a concert. After he was picked up by his mother, Rupp, III, ran onto a heavily traveled highway and was struck by an oncoming vehicle.

Phusion Projects has been sued numerous times in the last year. The company which was founded by two college friends believed that their drink was the perfect solution for adults who wanted to drink alcohol but also wanted a boost of energy. Since Four Loko came on the market, a number of similar concentrated alcoholic energy drinks have been invented and marketed towards young adults.

Mental Health Institution Employees Sue Citing Racial Discrimination

Officials at Western State Hospital allegedly violated the civil rights of nine former employees by accommodating a patient who requested white caretakers. The incident began when a white security officer incited fear in a mentally disturbed patient. According to court documents, the unnamed security
told the patient that Africans practiced cannibalism on whites. An internal complaint was lodged against the employee, but hospital officials took measures to match the patient up with only Caucasian or fair skinned staff members. The former employees claim that the Washington state Department of Social and Health Services was aware of the situation, however, no action was taken.

A staff member in charge of scheduling and assigning Western State Hospital employees requested that a supervisor honor the patient’s request. After several complaints were filed, the employees say that they were retaliated against by members of upper management. The attorney representing the former employees, Joe Schaeffer, says that his clients were systematically bullied, humiliated and unfairly disciplined until they either resigned or were fired. The plaintiffs are seeking lost wages, punitive damages and compensation for emotional distress.

Mental health experts say that racial discrimination is not uncommon in health care facilities. Working with mentally ill patients can be very stressful, but if the allegations against Western State Hospital and the Washington state Department of Social and Health Services are proven in court, the defendants could end up paying a multi-million dollar settlement to the nine plaintiffs. No statement addressing the allegations has been issued by the Western State Hospital.

30 Alleged CIA Operatives Arrested In Iran

Iran owned Press TV has reported that Iranian Intelligence Ministry has arrested more than 70 people believed to be working for the CIA. The US and Iran have a sordid history. Iran has long claimed that the US has a non-public policy that involves illegal spying and espionage. Usually, Iran does not publicize the arrests of foreign nationals via its Press TV network, however, the Iranian Intelligence Ministry says that the sting is the result of months of work.

Not all of the suspected CIA operatives hail from the US. Citizens of Turkey, the United Arab Emirates and Malaysia have been indefinitely apprehended. Similar to the case involving three American hikers who have been in the custody of Iranian authorities for yearly two years, little information has been given to the public. Iran’s legal system is somewhat unclear, but it is based on the laws defined in the Koran. Typically, any foreign national accused of a crime can be held for decades without access to legal counsel.

Iran has been accused of using torture techniques to gather intelligence and incite confessions. The 30 accused CIA operatives can be executed for their crimes if they are convicted under Iranian law. US officials have not issued a public statement, but they are likely working behind the scenes to figure who has been arrested and if any are, in fact, connected to the CIA. The US similarly gives little public information about the activities or identities of CIA operatives for national security reasons.