Quest Diagnostics pays $13 million and signs five-year CIA to resolve allegations of free sports entertainment for referral sources
Published November 8, 2026 · Coverage November 1–7, 2026, Pacific · Medium priority
The U.S. Attorney for the District of New Jersey announced on November 6 that Quest Diagnostics, Inc. paid $13,014,576 plus interest to resolve allegations that it submitted false claims to Medicare and to New York and New Jersey Medicaid. The United States alleged that from July 25, 2013 to August 3, 2022 Quest gave referral decisionmakers free entertainment tied to its New York Giants sponsorship, including suite seats, training-camp access and other events, to induce referrals, and that it measured the return on investment from those events for the 2013 through 2016 seasons. Quest also entered a five-year Corporate Integrity Agreement (CIA) with HHS-OIG that requires an independent review organization to evaluate its risk assessments and audits of remuneration exchanged with referral sources. Three relators share $2,472,769. DOJ states the claims are allegations only, and the agreement states it is not an admission of liability.
Background
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving anything of value to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. According to the allegations, in 2013 Quest entered into a Naming Rights and Sponsorship Agreement with the New York Giants that gave it suites at MetLife Stadium for home games and hospitality benefits, and the allegations were first made in a lawsuit filed under the False Claims Act's whistleblower provisions.
Who this affects
Laboratories and any hospital or health system that offers entertainment, hospitality or event tickets to physicians, practice executives or other referral decisionmakers.
Why it matters
Inference: the government alleged that free suite seats, events and hospitality offered to referral decisionmakers were remuneration intended to induce referrals in violation of the Anti-Kickback Statute, and cited Quest's tracking of revenue from invited accounts after events as part of the alleged scheme. The settlement is not a finding of liability. Hospitals with sponsorship or naming-rights agreements should check how the associated hospitality inventory is allocated.
Required actions
- None for organizations that are not parties to this settlement. The payment and the Corporate Integrity Agreement obligations fall on the settling laboratory.
Recommended action
- Review how sponsorship, suite and event-ticket inventory is distributed, and bar its use for physicians or practice decisionmakers in a position to refer.
- Confirm that entertainment and other non-monetary items given to physicians, including to their guests and family members, are tracked and reviewed under the Anti-Kickback Statute.
- Check whether sales or physician-relations goals are linked to invitations to events.
Scope and timing
- Authority status
- Settled
- Responsible owner
- Compliance; Physician Relations; Marketing; Legal
- Publication date
- 2026-11-06
- Other dates
- Alleged conduct July 25, 2013 to August 3, 2022. Agreement signature dates read 10/15/25, 10/17/2025 and 10/20/2025, with one blank; interest runs from June 5, 2025.
Not established
Signature dates in the agreement are in October 2025 although the release is dated 2026-11-06; the effective date (last signature) could not be established because one signature block's date is blank. The CIA document itself was not reviewed.
Sources
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