Settlement Reached In Bone Marrow Testing Scandal

Feb 2, 2012

The Attorney General Offices of New Hampshire and Massachusetts have settled  with UMASS Memorial  Health care in a scandal tied to bone marrow testing.

UMASS Memorial Health Care owned the testing lab that housed the Caitlin Raymond International Registry.  High testing fees triggered an investigation a bit over a year ago.

Under the settlement, UMASS Memorial agrees to pay a total of about $850,000.  About two thirds of that goes to Massachusetts where most of the bone marrow donors lived.  The hospital will pay New Hampshire about $250,000.

It also agrees to stringent recruiting practices going forward with a hard cap on testing fees.

UMASS Memorial admits no criminal wrongdoing but CEO John O’Brien said in a written statement “We accept full responsibility for the mistakes and errors of judgment that were made.”

In a separate move, UMASS Memorial said it is selling its laboratory marketing unit.  The division brought in about $150 million in 2010.