SmithKline Beecham Clinical Laboratories

SmithKline Beecham Clinical Laboratories (SBCL) was an American-based medical laboratory company that was acquired by Quest Diagnostics in 1999 for $1.3 billion.

Controversies

In 1989, SBCL had to pay a $1.5 million fine for illegal laboratory referral kickbacks.[1]

In 1997, Operation LabScam forced SBCL to agree to pay a $325 million settlement for billing Medicare and Medicaid for tests that physicians were misled into believing were free, violating the 1863 False Claims Act.[2]

In 1998, a phlebotomist at an SBCL facility in Palo Alto, California was exposed as reusing needles to save money. As a result, over 3,600 patients had to receive testing and counseling for HIV and hepatitis. The incident led to phlebotomy licensure in California.[3]

References
  1. Archives, L. A. Times (29 December 1989). "SmithKline Lab to Pay Record $1.5-Million Fine : Health Care: The firm allegedly violated a federal law that prohibits payments to doctors to encourage referrals of Medicaid and Medicare patients". Los Angeles Times.
  2. "DOJ AND HHS HIGHLIGHT LATEST EFFORTS TO FIGHT FRAUD BY CLINICAL LABORATORIES". Justice.gov. February 24, 1997. Retrieved 17 February 2024.
  3. Michel, Robert (7 June 1999). "Palo Alto Needle Reuse Episode Widens in Scope". The Dark Report. Retrieved 17 February 2024.


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