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Quest Diagnostics to pay $5M to California law offices in alleged malpractice settlement

Prosecutors allege Quest Diagnostics improperly disposed of patient medical records, medical waste and hazardous waste.

CALIFORNIA, USA — Sacramento County will receive over $250,000 as part of a $5 million settlement Quest Diagnostics Inc. will pay to resolve allegations the healthcare company unlawfully disposed of hazardous and medical waste statewide.

Thirty inspections conducted by district attorneys’ offices across California found hundreds of containers of chemicals, unredacted medical information, medical waste and hazardous waste, Sacramento County District Attorney Thien Ho announced Wednesday. 

California Attorney General Rob Bonta, and the district attorneys of Alameda, Los Angeles, Monterey, Orange, Sacramento, San Bernardino, San Joaquin, San Mateo, Ventura and Yolo counties are part of the settlement.

The unlawful disposals were alleged violations of the Medical Waste Management Act, hazardous waste control law, unfair competition law and civil laws prohibiting the unauthorized disclosure of personal health information, according to the district attorney’s office.

Investigations reportedly found in Quest Diagnostics’ compactors and dumpsters:

  • Unredacted medical information
  • Medical waste such as used specimen containers for blood and urine
  • Chemicals including bleach, reagents, batteries and electronic waste
  • Hazardous waste such as used batteries, solvents and flammable liquids.

The settlement requires Quest Diagnostics to pay $3,999,500 in civil penalties, $700,000 in costs and $300,000 for a supplemental environmental project to support environmental training and enforcement in California, Ho said.

The settlement also requires Quest Diagnostics maintain an environmental compliance program, including hiring a third-party waste auditor and reporting annually on its progress, according to the DA’s office.

Quest Diagnostics reportedly implemented numerous changes to comply with state law after being notified of the investigations, including hiring an independent environmental auditor and modifying its procedures to improve handling, storage and disposal of waste at four laboratories and over 600 patient service centers in California, the DA’s office said.

“Thanks to the joint efforts of our Consumer and Environmental Protection Unit and prosecutors across the state, the financial penalty and permanent injunction will deter Quest Diagnostics from violating hazardous waste, medical waste and protected health information laws,” Ho said in a statement.

Sacramento County will receive a total of $259,440 from the settlement, Ho said. The money is expected to reimburse the cost of prosecuting the case and increase the enforcement of consumer and environmental protection laws, Ho said.

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