| Last Updated: | 5/22/2011 |
| Budget Issue: | Savings due to the Quest Diagnostics legal settlement. |
| Program: | Department of Health Care Services |
| Finding or Recommendation: | Recommend the Legislature recognize $50.1 million in savings from a legal settlement with Quest Diagnostics. |
On May 19, 2011, the California Attorney General's Office and the California Department of Health Care Services (DHCS) reached a $241 million settlement with Quest Diagnostics to recover illegal overcharges for medical laboratory testing provided to the state's medical program for the poor, known as Medi-Cal. Of this $241 million amount, the DHCS is expected to receive $50,055,700. We recommend the Legislature recognize the $50.1 million in savings as a part of its budget deliberations.