Not long after I published my article about the $560,000 settlement between pathology laboratory StrataDx and the federal government to settle allegations StrataDx provided kickbacks to physicians through client billing arrangements and sham consulting agreements with referring physicians, I received an email from dermatopathologist Dr. Lisa Cohen.
Unbeknownst to me, Dr. Cohen, along with dermatopathologist Dr. Terence Harrist, purchased StrataDx from private equity firm Linden Capital Partners right around the same time the settlement agreement was announced.
Consistent readers of this site know I always allow the subjects of my articles to tell their side of the story if they are interested in doing so. In this case, I felt it was especially important for readers to know the arrangements that led to Strata’s settlement preceded Drs. Cohen and Harrist’s ownership of StrataDx.
So I was very pleased when Dr. Cohen gave me permission to post her comments, which appear in their entirety below. For those interested, here is the link to the press release Dr. Cohen mentions.
Best of luck to Drs. Cohen and Harrist in their new venture.
Thank you for including the StrataDx news in your Pathology Blawg, though it is disconcerting to see one’s company portrayed in such a negative light.
The OIG settlement was intentionally timed to be completed and announced in conjunction with my acquisition of Strata. The billing arrangements outlined in the settlement were orchestrated by prior ownership and senior leadership. I couldn’t agree with you more that client billing is a potentially dangerous practice. If only the government would outlaw these arrangements completely, then there would be no need to discuss it further.
I operated a very clean and successful dermatopahtology laboratory in New England for many years. My decision to acquire Strata was based on the confidence I have in our team of 120 employees, my desire to save jobs, and my knowledge that a high quality, top notch company such as ours should continue to exist and flourish.
We are practicing in an era of laboratory mis-deeds with respect to these arrangements as well as other financial arrangements. Laboratories are using meaningful use, EMR enhancements, and laboratory-practice interfaces as giveaways.
We need to take a stand as medical professionals that the diagnoses we deliver are the real value of the relationship, not the financial giveaways. Strata is positioned to be a preeminent anatomic pathology provider because of the quality of the slides produced in its technical laboratory and the expertise at the scope.
Attached please find our press release. Thank you for your consideration.