UnitedHealthcare's $100M lawsuit against medical labs moves forward

A lawsuit filed by UnitedHealthcare that accuses medical labs of operating a $100 million billing scheme will move forward after a judge denied some of the defendants' motions to dismiss the claims, according to court documents and Bloomberg Law.

In a related lawsuit filed in 2017, UnitedHealthcare accused Dallas-based laboratory network Next Health of a $100 million scheme involving kickbacks to physicians and other providers for overpriced and unnecessary drug and genetic tests. At the time, Next Health said it was disappointed in the lawsuit, "as we have been negotiating with them to develop a new working agreement covering a number of operational and financial issues."

In court documents filed Feb. 26 in the U.S. District Court for the Northern District of Texas' Dallas Division, a judge dismissed several claims filed by UnitedHealthcare, including claims of negligent representation and fraudulent transfers. However, the judge denied Next Health's motion to dismiss the insurer's claims of fraud and conspiracy to commit fraud, allowing the lawsuit to advance. 

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