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Drug Testing Laboratory and Owner Agree to 7 Year Exclusion

On July 26, 2016, Nexus Medical Services, Inc. (Nexus), and its owner, French McClung (McClung), agreed to be excluded from participation in all Federal health care programs for a period of seven years under 42 U.S.C. § 1320a-7(b)(7). OIG alleged that Nexus and McClung paid remuneration in the form of an inflated monthly rent payment to a physician’s practice to sublease a portion of the practice’s office space in exchange for referrals from the practice’s physician owner to Nexus. OIG also alleged that Nexus and McClung employed an individual that they knew or should have known was excluded from participation in Federal health care programs.

Action Details

  • Date:July 26, 2016
  • Enforcement Types:
    • CMP and Affirmative Exclusions