Summary of LAO Findings and Recommendations on the 2011-12 Budget

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	Program	Budget Issue	LAO Finding Or Recommendation	Last Updated
Go Back	Department of Health Care Services	Savings due to the Quest Diagnostics legal settlement.	Recommend the Legislature recognize $50.1 million in savings from a legal settlement with Quest Diagnostics.	5-22-11

Detailed Narrative
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.

Detailed Narrative

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.