LabCorp to pay $2.1 million for allegedly overbilling Department of Defense

March 27 (UPI) -- LabCorp has settled a lawsuit over allegedly overbilling the Department of Defense for laboratory testing services.

The company that specializes in providing a laboratory network to the healthcare industry agreed to pay $2.1 million to the U.S. government, the Justice Department announced Monday.

According to the press release from the Justice Department, Laboratory Corporation of America entered a contract with the Department of Defense in 2012, offering genetic testing to all of the department's military training facilities, including international facilities. The company then double- and triple-billed the department.

The testing was performed by the third-party company GeneDx.

"Federal contractors are required to bill for costs actually incurred. The U.S. Attorney's Office and our partners are committed to protecting taxpayer dollars and ensuring integrity and compliance with government contracts," U.S. Attorney Erek L. Barron said in a statement.

Former LabCorp employee Donna Hecker-Gross reportedly blew the whistle on the company's alleged overbilling, filing the lawsuit on behalf of the government under the False Claims Act. She will receive $357,000 in the settlement. Hecker-Gross accused the company of overcharging on dozens of claims through at least 2017.

The Justice Department notes that the settlement is not an admission of guilt by LabCorp.

CNBC reports that the Department of Defense was overcharged $113,525.50 on 21 tests between March 2016 and January 2017.