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.
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