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Other Budget Issues

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.
Further Detail

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.