A federal judge in Pennsylvania sided with a diagnostic laboratory, Genesis Diagnostics, on its breach of contract claims after a health plan allegedly failed to pay more than $400,000 for the lab testing completed on behalf of its members.
Plaintiff Abira Medical Laboratories, doing business as Genesis Diagnostics, is allowed to proceed with claims of breach of contract and quantum meruit/unjust enrichment claims against Kaiser Foundation Health Plan of the Mid-Atlantic States, alleging the defendant failed to pay, or severely underpaid, $419,356 for laboratory testing. Genesis claimed it performed clinical laboratory, pharmacy, genetics, addiction rehabilitation, and COVID-19 testing on approximately 500 samples from Kaiser-insured patients, according to the May 15 opinion filed in the U.S. District Court for the Eastern District of Pennsylvania.
