Coastal Diagnostics LLC, a reference laboratory in Branford, and its owner have paid $145,720 to resolve allegations made by federal and state authorities that they made material misrepresentations to the Connecticut Medicaid program in their provider enrollment application.
The announcement was made Wednesday by David Sullivan, U.S. Attorney for the District of Connecticut.
In order to participate in the Connecticut Medicaid program, providers must complete a Provider Enrollment Application. On or about March 6, 2024, Tricia Conroy, on behalf of Coastal Diagnostics, completed and submitted such an application to the Connecticut Medicaid program.
One of the questions in the application asks: “Are any owners, partners, members, officers, directors, shareholders, or managing employees of applicant related by family, marriage, ownership, membership, control, or business relationship to any other provider that is currently, or within the last 5 years, has been, enrolled in the Connecticut Medical Assistance Program?” Conroy answered “No” to this question.
The United States and the State of Connecticut contend that this was a material misrepresentation, as Genco Lab LLC, a reference laboratory located at the same business address as Coastal Diagnostics, was a Medicaid provider at the time. Genco Lab was owned by Conroy’s husband, and Conroy served as the COO of Genco Lab. If the question had been answered truthfully and Coastal Diagnostics had disclosed its relationship with Genco Lab, Connecticut Medicaid would not have approved Coastal Diagnostics’ application because, at the time, Genco Lab was under a payment suspension and was being investigated for fraud.
After Coastal Diagnostics began submitting claims for laboratory services, Connecticut Medicaid learned that Coastal Diagnostics and Genco Lab were related and terminated Coastal Diagnostics’ provider agreement.
The U.S. and the State of Connecticut contend that the claims submitted by Coastal Diagnostics were false and fraudulent.
To resolve the government’s claims, Coastal Diagnostics and Conroy agreed to pay $145,720, which covers the time-period from March 6, 2024-June 3, 2024.
In 2025, Genco Lab and its owners entered into a civil settlement agreement with the federal and state governments in which they paid $1,255,825 to settle allegations that they submitted false and fraudulent claims to government health care programs for medically unnecessary urine drug tests.
This matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot and by Assistant Attorney General Christine Miller of the Connecticut Office of the Attorney General.
This announcement is part of the Department of Justice’s 2026 National Health Care Fraud Takedown, a coordinated enforcement action involving a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 civil monetary payment settlements amounting to over $73 million, more than 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since Oct. 1, 2025.
