A Uniondale laboratory that specializes in cancer-detection tests, and whose former owner settled charges last year of improper Medicare and Medicaid billing, may be closing on May 1, according to a state regulatory filing.
Bostwick Laboratories employs 128 workers, according to the WARN notice posted on the state Labor Department’s website on Monday.
The notice said the laboratory may be closing because of the company’s sale. Bostwick also has offices in Orlando and Glen Allen, Virginia, its website shows. A woman who answered the telephone in the Virginia location said the company’s principal office is in Uniondale.
Late Wednesday evening Jerry Diffley, chief operating officer, said that the company was in the process of being auctioned and that a new owner may retain all or some of the employees.
“We are giving the WARN notice in an abundance of caution,” he said.
The U.S. Justice Department announced in January last year that the lab’s founder and former owner, Dr. David G. Bostwick, had agreed to pay up to $3.75 million to settle alleged violations that he directed the company to bill Medicare and Medicaid for “unnecessary” cancer detection tests.
The settlement covered allegations that through the company he offered discounts and billing arrangements to persuade physicians to refer business to him, in violation of the federal Anti-Kickback Statute, the department said in a news release at the time. Bostwick didn’t admit to liability in the settlement.
He couldn’t be reached for comment.
The state Worker Adjustment and Retraining Notification Act (WARN) requires companies with at least 50 full-time employees to give a 90-day notice in advance of a mass layoff or closing.