Diagnostic firm Genomics Health, a subsidiary of Exact Sciences Corp. , agreed to pay $32.5m to resolve allegations it had filed Medicare claims for some cancer tests. A North Carolina lab owner was sentenced to almost 17 years in prison for billing Medicaid for unnecessary drug tests for Medicaid beneficiaries. And at least 10 practitioners are facing jail time or massive fines for violations of the False Claims Act.
Surge In US Enforcement Actions Shows Focus On Diagnostics
An apparent spike in health care enforcement actions by the US Department of Justice has led to hundreds of millions of dollars in penalties and multiple jail sentences throughout the sector. The DOJ has announced at least 20 device-related cases since mid-September.
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The preliminary White House 2026 budget plan cuts agency funding, but not so sharply that user fees are excluded from collection.
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Abbott and J&J reassured investors they will maintain their 2025 profit forecasts. Abbott projects $5.05 to $5.25 per share and plans a new $500m investment in manufacturing and R&D sites. J&J anticipates $400m in tariff-related costs but committed $55bn in US investment over four years.