STATE OF FLORIDA DIVISION OF ADMINISTRATIVE HEARINGS STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, CASE NO. 06-2447MPI Petitioner, C.l. NO, 06-4368-000 5 1) C1. NO. 06-4384-000 BAe y vs. CASENO.07-0485MPI Ce C.1. NO. 06-4373-000 Oe LABORATORY CORPORATION OF CASE NO, 06-2701 MPI we} AMERICA HOLDINGS AND THEIR CL. NO. 06-4374-000 SUBSIDIARIES, CASE NO. 06-2702MPI C.1. NO. 06-4375-000 Respondent. RENDITION NO.: AHCA*7T- 0444 -S-mD0 / FINAL ORDER THE PARTIES resolved all disputed issues and executed a Settlement Agreement. The parties are directed to comply with the terms of the attached settlement agreement. Based on the foregoing, this file is CLOSED. DONE and ORDERED on this the lf day of Asguct , 2007, in Tallahassee, Florida. poe OE Teen M.D., SECRETARY J arnt for Health Care Administration A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO A JUDICIAL REVIEW WHICH SHALL BE INSTITUTED BY FILING ONE COPY OF A NOTICE OF APPEAL WITH THE AGENCY CLERK OF AHCA, AND A SECOND COPY ALONG WITH FILING FEE AS PRESCRIBED BY LAW, WITH THE DISTRICT COURT OF APPEAL IN THE APPELLATE DISTRICT WHERE THE AGENCY MAINTAINS ITS HEADQUARTERS OR WHERE A PARTY RESIDES. REVIEW PROCEEDINGS SHALL BE CONDUCTED _IN ACCORDANCE WITH THE FLORIDA APPELLATE RULES. THE NOTICE OF APPEAL MUST BE FILED WITHIN 30 DAYS OF RENDITION OF THE ORDER TO BE REVIEWED. Copies furnished to: L. William Porter II, Esquire Agency for Health Care Administration (Interoffice Mail) Robert R. Hearn, Esquire Phelps Dunbar LLP 100 S. Ashley Drive, Suite 1900 Tampa, Florida 33602-5311 (U.S. Mail) P. Michael Ruff Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 Tim Byrnes, Chief, Medicaid Program Integrity Pamela Langford, Medicaid Program Integrity Finance and Accounting CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true and correct copy of the foregoing has been furnished to the above named addressees by U.S. Mail on this the/E* day of Fisaxt , 2007. Richard Shoop, Esquire Agency Clerk State of Florida Agency for Health Care Administration 2727 Mahan Drive, Building #3 Tallahassee, Florida 32308-5403 (850) 922-5873 Laid STATE OF FLORIDA ‘ L. E D DIVISION OF ADMINISTRATIVE HEARINGS MOG IT ANT STATE OF FLORIDA, AGENCY FOR HEALTH CARE DIVISION OF ADMINISTRATION, ACBIRISTRATIVE CASE NO. 06-2447MPI HEARINGS Petitioner, C.I. NO. 06-4368-000 C.L NO. 06-4384-000 vs. . CASE NO. 07-0485MPI C.I. NO. 06-4373-000 LABORATORY CORPORATION OF CASE NO. 06-2701 MPI AMERICA HOLDINGS AND THEIR C.L NO. 06-4374-000 SUBSIDIARIES, CASE NO. 06-2702MPI C.1. NO. 06-4375-000 Respondent. / OMNIBUS CONSOLIDATED SETTLEMENT AGREEMENT AND MUTUAL CONSENT TO FINAL ORDER STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION (“AHCA” or “the Agency”), and Laboratory Corporation of America Holdings and its Subsidiaries (collectively, “LabCorp”), by and through the undersigned, hereby stipulate, resolve and agree as follows: 1. The parties enter into this Agreement for the purpose of memorializing a resolution of each matter set out in the case numbers above and mutually agree that upon execution of this Agreement, that resolution is full and final, without need of further proceedings. 2. LabCorp is a Florida Medicaid provider and a full service clinical laboratory operating in various locations, each with its own distinct provider number. The services at issue in the captioned audits were performed at different laboratories, having the following provider numbers: 030198100, 030654100, 030507310, 030507317 and 030507320 (collectively, the “Providers”). LabCorp was a provider during the audit period. Laboratory Corporation Settlement Agreement 3. In its Final Agency Audit Reports (final agency action) dated June 7, 2006, C.l. No. 06-4368-000, May 24, 2006, C.1. No. 06-4384-000, June 22, 2006, C.I. No. 06-4373-000, June 22, 2006, C.J. No. 06-4374-000 and June 22, 2006, C.I. No. 06-4375-000 respectively, AHCA notified Providers that review of Medicaid claims performed by Medicaid Program Integrity (MPI), Office of the AHCA Inspector General, indicated that certain claims, in whole or in part, had been inappropriately paid by Medicaid. 4, The Agency sought recoupment of these overpayments, in the amount of $330,154.54, $213.46, $628.69, $6,296.57 and $8,899.41 respectively. In response to the audit letters dated June 7, 2006, May 24, 2006 and June 22, 2006, Providers filed petitions for formal administrative hearings, which were assigned DOAH Case Nos. 06-2447MPI, 07-0485MPI, 06- 2701MPI and Case No. 06-2702MPI respectively. 5. Prior to a final hearing, LabCorp and the Agency attempted to resolve the allegations raised in them. There followed extensive information exchanges between the parties. 6. The parties now agree to resolve the issues raised in above captioned FAARs as follows: a. By signing the Settlement Agreement and adopting it entirely by a Final Order, the Agency hereby rescinds each of the FAAR’s captioned above. b. LabCorp will, upon execution of this Agreement and its incorporation into Final Order, withdraw its Petitions for Request for Formal Hearing for each FAAR. c. The Agency reserves its right to conduct a comprehensive audit of Provider, for claims during the same time period as the above referenced FAARs. The Agency, however agrees that any such audit will be initiated by a demand for records, which will be examined, and Laboratory Corporation Settlement Agreement the Agency will provide an opportunity to discuss policy interpretation prior to the issuance of any FAAR relating to such an audit. d. Each party shall bear their own attorneys’ fees and costs, if any, for all proceedings, and specifically each waives any claim to such fees or costs, against the other party, under any theory of recovery, 7. The signatories to this Agreement, acting in a representative capacity, confirm they are duly authorized to enter into this Agreement on behalf of their respective principle. 8. This Agreement shall be construed in accordance with the provisions of the laws of Florida. Venue for any action or dispute arising from this Agreement shall be in Circuit Court, Leon County, Florida. 9. This Agreement constitutes the entire agreement between the parties, including anyone acting for, associated with or employed by them, and supersedes any prior discussions, agreements or understandings. There are no promises, representations or agreements between the parties, other than as set forth herein. No modification or waiver of any provision shall be valid unless a written amendment to this Agreement is completed and properly executed by each of the parties. 10. This is an Agreement of settlement and compromise, made in recognition that the parties may have different or incorrect understandings, information and contentions, as to facts and law, and with each party compromising and settling any potential correctness or incorrectness of their understandings, information and contentions as to facts and law, so that no misunderstanding or misinformation shall be a ground for rescission hereof. 11. This Agreement is and shall be deemed jointly drafted and written by all parties to it and shall not be construed or interpreted against the party originating or preparing it. Laboratory Corporation Settlement Agreement 12. To the extent that any provision of this Agreement is prohibited by law for any reason, such provision shall be effective to the extent not so prohibited, and such prohibition shall not affect any other provision of this Agreement. 13. This Agreement shall inure to the benefit of and be binding on each party’s subsidiaries, parents, divisions, successors, affiliates, insurers and assigns, and their officers, directors, agents, employees, and all other persons, firms or corporations who are or may be liable regarding the dispute underlying this Agreement. 14. All times stated herein are of the essence of this Agreement. 15. This Agreement shall be in full force and effect upon execution by the respective parties in counterpart. LABORATORY CORPORATION OF AMERICA HOLDINGS AND ITS SUBSIDIARIES 4 Oem Dated) Je 2 Ly 7 , 2007 BY: ©. Samve/ Fberts (Print name) THER: Senrer Vice Pres;devd ¢ Genere/ Counsel é AGENCY FOR HEALTH CARE ADMINISTRATION 2727 Mahan Drive, Mail Stop #3 Tallahassee, FL 32308-5403 _Ainda Keon Dated: J id ~ » 2007 Linda Keen Inspector Gengral Ex Dated: Aucoot l , 2007 ig Smith Genera) Counsel ; PF aad blo w- Dated: OT- (> , 2007 L. William Porter II Assistant General Counsel

Docket for Case No: 06-002701MPI