Mystery van that collected DNA samples and Medicaid info in Louisville shuts down – National

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An organization accused of providing money and amassing DNA samples in poor neighbourhoods of Louisville, Ky., has closed, citing “detrimental publicity” following a World Information investigation.

The corporate, Freedom Medical Labs LLC, was handing out $20 and amassing individuals’s DNA samples and Medicaid data in low-income areas of Louisville, Ky., World Information beforehand reported. Its staff labored out of an unmarked white van and claimed to be conducting surveys and amassing cheek swabs for cancer-screening exams that might be lined by medical insurance, witnesses say. Every cheek swab is doubtlessly value as much as $eight,000 in insurance coverage payouts for the lab conducting the take a look at, though it’s solely lined when a physician deems it to be medically obligatory.


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Why an unmarked van offered cash for DNA samples in low-income areas of Kentucky

State officers and Louisville group leaders say they’re involved somebody may be benefiting from town’s poorest by cashing in on their medical insurance for pennies on the greenback.

“Twenty means every thing to those individuals as a result of we now have one of many worst shortages of reasonably priced housing within the nation,” mentioned Louisville Coun. Barbara Sexton Smith, who represents a number of the metropolis’s lowest-income neighbourhoods. “They’re preying on the low-income (residents) they usually’re preying on people who find themselves impoverished,” she instructed World Information.

The Kentucky lawyer common’s workplace has issued a rip-off alert relating to a “suspicious van” and stories of a bunch paying money for DNA and medical insurance data. The AG’s workplace is urging anybody who has turned over their information to name Medicaid’s fraud hotline.

Freedom Medical Labs, which relies out of a residential deal with in Silver Spring, Md., dissolved final Monday after World Information linked it to the van in a narrative on Apr. 6. The corporate didn’t seem to have a bodily lab however as a substitute operated as a medical advertising and marketing firm that known as itself Freedom Well being.

A person claiming to supply most cancers screening, proper, conducts exams alongside their van in Louisville, Ky., in late March 2019.

Courtesy of Tara Bassett

Freedom Well being president Robert Alan Richardson says the corporate shut down attributable to “latest detrimental publicity” surrounding its operations in Louisville. He additionally denies paying sufferers for his or her DNA.

“Nobody was paid for any affected person specimens,” Richardson instructed World Information. He says sufferers had been paid $20 to finish a well being survey, and that the DNA was collected for “unrelated” analysis into how sure genes reply to pharmaceutical medicine. He says every affected person signed a type stating that they supplied the samples freely and “weren’t compensated in any means.”

“The specimen testing is solely voluntary, authorized, and a lined profit underneath the sufferers’ insurance policy,” he mentioned in a written assertion. Richardson added that no testing is finished with out an order from the affected person’s doctor.

Richardson says all samples had been despatched to completely accredited labs to be examined and referred to the affected person’s physician. He says Freedom Well being complied with all state and federal legal guidelines, and enlisted a well being care compliance lawyer to ensure sufferers’ privateness was protected.

Robert Alan Richardson, president of Freedom Medical Labs LLC, is shown in this April 2017 photo.

Robert Alan Richardson, president of Freedom Medical Labs LLC, is proven on this April 2017 picture.

Robert Alan Richardson/Fb

The Louisville police division’s fraud crew has seemed into the matter. Nonetheless, they are saying it’s not unlawful to pay somebody for his or her DNA.

Louisville resident Claudette Perkins, who supplied her pattern to the Freedom Well being crew in March, says she felt tricked by the operation.

“They’re hustling on the poor individuals on the town,” she instructed World Information. Perkins says she gave them her Medicaid quantity, social insurance coverage quantity, signature and cheek swab.


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Perkins, 64, says she wanted the cash to assist pay for a storage locker that held all of her belongings. “That’s the one motive I took it — the cash — as a result of I assumed that this was authorized,” she mentioned.

Freedom Well being staff arrange outdoors soup kitchens in Louisville and provided $20 for individuals to take a Medicaid survey, based on Tara Bassett, a witness and psychological well being advocate for the homeless.

“They had been like carnival barkers they usually had been simply grabbing individuals off the top of the (soup kitchen) line and bringing them across the nook and shuffling them by way of,” Bassett instructed World Information. “These guys had been clearly focusing on them.”

Accredited genetics lab cuts ties with Freedom Well being

Crestar Labs, a federally accredited genetics lab in Spring Hill, Tenn., says it has ended its enterprise relationship with Freedom Well being in gentle of World Information’ investigation.

The corporate says it made the choice after World Information requested about two delivery labels that present Crestar despatched packages to Freedom Well being in Maryland and Louisville. Crestar had been utilizing Freedom Well being to market its providers, the corporate mentioned.

“Crestar Labs categorically denies any wrongdoing in reference to this matter because it had completely no involvement in any misconduct which will have been engaged in by Freedom Well being,” a Crestar spokesperson instructed World Information in an announcement.

The labels present that Crestar shipped packages to Ed Burch, a enterprise affiliate of Richardson’s, at Burch’s house deal with in Maryland and at a resort in Louisville. Burch and Richardson had been enterprise companions in a separate medical provide firm.

Burch didn’t reply to requests for remark.

This shipping label shows Crestar Labs sent a package to Ed Burch of Freedom Medical Labs. The address corresponds to the Galt House Hotel in Louisville, Ky.

This delivery label reveals Crestar Labs despatched a package deal to Ed Burch of Freedom Medical Labs. The deal with corresponds to the Galt Home Resort in Louisville, Ky.

Courtesy of Barbara Sexton Smith

“Crestar Labs can not say whether or not any of the alleged improprieties made about Freedom Medical Labs within the information report are true or not,” the Crestar spokesperson mentioned. “Nonetheless, in an abundance of warning, Crestar Labs determined to train its choice to terminate its enterprise relationship with Freedom Well being with out trigger.”

Crestar says no testing of any variety is meant to happen “with out an order from a affected person’s doctor, based mostly upon standardized medical necessity tips.”

In separate statements, each the Crestar spokesperson and Richardson mentioned: “It’s not unlawful for medical laboratories to market their providers to sufferers.”

Providing most cancers exams far and vast

Freedom Medical Labs is one among a number of medical advertising and marketing firms providing most cancers screening throughout the U.S.

These firms began recruiting contractors late final yr to canvas the nation providing a brand new type of “free” DNA testing, a number of contractors instructed World Information. The regulator-approved take a look at can determine the genetic markers linked to sure varieties of hereditary most cancers, which could be helpful for at-risk people who would possibly require nearer monitoring.

Many well being insurers will cowl these exams, which might in any other case price as much as $eight,000 per individual. Nonetheless, insurers will solely cowl the exams when a physician deems them to be medically obligatory.

Gross sales reps providing these exams have reportedly been noticed at well being festivals, group centres, seniors’ houses and even soup kitchens in over a dozen states.

“It’s the Wild West so far as inherited most cancers testing, and that’s actually inappropriate,” mentioned Dr. William Kearns, who runs the Advagenix testing lab in Rockville, Md.

Kearns’ lab works with medical advertising and marketing firms to gather and course of genetic exams, however he says he’s by no means labored with Freedom Medical Labs. Advagenix’s docs overview every pattern they obtain to make sure that testing is medically obligatory, Kearns instructed World Information. He says a affected person is eligible if they’ve a household historical past of sure types of most cancers, similar to breast most cancers.

Nonetheless, he’s involved that others may be amassing samples from “invalid” candidates with a view to invoice pointless exams to Medicare and Medicaid.

“We might by no means do one thing like that,” mentioned Kearns, who can also be a number one geneticist at Johns Hopkins College’s Faculty of Drugs.

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Colorado-based MedVantage Consulting LLC markets these DNA exams to individuals with insurance coverage protection and a household historical past of most cancers. MedVantage chief govt Duane Henneman says his crew solely refers sufferers when the exams are medically obligatory, and his contractors by no means pay for samples.

“We’ve over 200 HIPAA (Well being Insurance coverage Portability and Accountability Act)-certified consultants in over 30 states,” he instructed World Information. Henneman says his contractors earn fee charges for each legitimate candidate they bring about in for testing.

“Assessments will come again to the lab between $6,000-$eight,000,” he mentioned. “We pay our consultants 15 per cent of that based mostly on what’s accepted and paid to us.”

MedVantage operates in a number of areas, together with the Louisville space.

Henneman says there are a number of different medical advertising and marketing corporations that funnel exams again to labs like Crestar and Advagenix. “We contract with the labs, and the labs invoice Medicaid or the labs will invoice Medicare,” he mentioned. “Medicare has by no means heard of MedVantage. By no means. There’d be no motive to.”


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An ex-contractor with a rival advertising and marketing firm says she was paid $500 to gather 15 samples per week. She would gather cheek swabs at a sales space that she arrange in low-income areas of a state bordering on Kentucky. She mentioned she by no means provided cash for exams. As a substitute, she entered individuals’s Medicaid numbers into a wise telephone app to see in the event that they had been eligible for the insurance coverage payout. Solely eligible candidates could be examined.

“We had been instructed as soon as we take the swab, it doesn’t have the rest to do with us,” mentioned the previous contractor, who requested to stay nameless.

Genetic knowledge has turn into a invaluable commodity within the pharmaceutical business. Researchers are utilizing the information to see how particular person genes reply to varied medicine — a subject referred to as pharmacogenetics. The analysis is anticipated to yield extra patient-specific remedies sooner or later.

Crestar simply introduced a deal to arrange its genetic testing knowledge right into a central database for most cancers and pharmaceutical analysis.

“All of our genetic knowledge that’s derived from affected person pattern evaluation will probably be saved and managed in a usable means for evidence-based drugs, translational drugs and analysis,” Crestar’s spokesperson mentioned.

When requested if that knowledge may be shared with regulation enforcement, Crestar mentioned it won’t be out there “to organizations outdoors of Crestar or its associates.”

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Louisville affected person Claudette Perkins says she hasn’t acquired any take a look at outcomes again from Crestar or Freedom Well being. She’s not even certain who has her DNA samples proper now, and she or he worries that it might need fallen into the flawed fingers.

“I gave the individuals all my private data and I’ve been ready for what’s going to occur to me now,” she mentioned. “At the back of my thoughts, I’m questioning … what’s going to fall out?”

© 2019 World Information, a division of Corus Leisure Inc.

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