Durable medical equipment suppliers, clinical laboratories, and diagnostic imaging centers in the Los Angeles area share one enforcement reality: they bill in volume, on standardized codes, through intermediary ordering providers — a combination fraud task forces have targeted for years with data analytics. My Rights Law Criminal Defense and DUI Lawyers defends Los Angeles DME suppliers, lab owners, phlebotomists, radiology groups, and their marketers against fraud investigations and charges. This page explains the allegations and defense strategy in these industries.
Federal cases charge 18 U.S.C. section 1347 (health care fraud) built on claim patterns, often with 42 U.S.C. section 1320a-7b kickback counts for the referral relationships that supplied the patients. Laboratories and imaging centers also face 42 U.S.C. section 1395nn — the Stark Law’s civil payment prohibition for referrals from providers with financial relationships — which frequently accompanies criminal charges. State cases use Penal Code section 550 for Medi-Cal and insurance claims. DME quality allegations can add 42 U.S.C. section 263a-related FDA and supplier-standard issues.
They start with data: the Medicare database of allowed charges flags outlier labs and DME suppliers; compare ordering patterns to peers; and map payments between suppliers and referral sources. Then come witness interviews with ordering providers — many of whom never knew what was billed under their name. Federal cases file in the Central District of California; state Medi-Cal cases through DMFEA at the Los Angeles County Superior Court’s Clara Shortridge Foltz Criminal Justice Center at 210 West Temple Street. Licensing and CLIA certification actions run in parallel.
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Yes. Urine drug screening — especially per-test billing in pain management and addiction treatment settings — has been a sustained federal target. Volume, standing orders, and blanket test panels draw the most scrutiny.
Suppliers have independent obligations to verify delivery and, for Medicare, that the item is medically necessary. “The doctor ordered it” is mitigation, not a complete defense — supplier-side diligence records are the real protection.
A contract where a lab pays a provider to handle specimens. Regulators view per-specimen fees that exceed fair market value as remuneration for referrals — a classic Anti-Kickback Statute theory. These agreements need safe-harbor structuring.
This page is legal information, not legal advice, and reading it does not create an attorney-client relationship. Laws and enforcement priorities change, and outcomes depend on the facts of each case.
Los Angeles office: My Rights Law Criminal Defense and DUI Lawyers - Los Angeles, 527 W 7th St #936, Los Angeles, CA 90014. Call 888-702-8882 for a free confidential consultation.
This page was written by the My Rights Law Editorial Team and reviewed for legal accuracy by Bobby Shamuilian.
Attorney Shamuilian is the founder and managing partner of My Rights Law and is widely recognized as a legal authority, frequently appearing as a legal analyst and TV pundit on national news outlets.
He has earned a perfect “10.0 – Top Attorney” rating on AVVO and a “10.0” rating on Justia, and has been named among the “Top 40 Under 40” and the “Top 100 Trial Lawyers” by The National Trial Lawyers.
With his proven expertise and dedication, Mr. Shamuilian is committed to protecting your rights and achieving the best possible outcome for your case.
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