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Sterling Reference Laboratories Reaches Final Agreement with U.S. Government

TACOMA, Wash., July 20, 2020—Sterling Reference Laboratories, which operates as Cordant Health Solutions®, announced today that it has reached an agreement with the United States Department of Justice and the United States Attorney’s Office for the Western District of Washington to settle a civil investigation stemming from two lab marketing service agreements the Company had in place in 2013-2015.

Under the agreement, Cordant will pay $11.9 million to resolve the investigations that have been pending in Washington and Tennessee for more than five years. The settlement was reached without any admission of wrongdoing and reflects the Company’s desire to put the matter behind it and avoid the expense of further litigation so it can focus on supporting clinicians with solutions to help them effectively care for patients.

Cordant also entered into a Corporate Integrity Agreement with the Office of the Inspector General for the United States Department of Health and Human Services, under which the Company will strengthen specific corporate compliance obligations and undergo periodic audits of its compliance and other financial arrangements by an Independent Review Organization.

“Cordant is pleased to reach a resolution of the investigation and looks forward to continuing to put patient care first and provide innovative tools for monitoring and managing behavioral health and chronic pain patients through our unique programs,” said Sue Sommer, CEO and president of Cordant. “At the same time, we will maintain our historical commitment to conduct our activities according to the highest ethical standards and to follow our comprehensive compliance program.”

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About Cordant Health Solutions®
Based in Denver, Cordant Health Solutions provides innovative tools for monitoring behavioral health, chronic pain and criminal justice cases. Our unique pharmacy and drug testing programs provide accurate, actionable results to protect prescribers, hold patients accountable and optimize quality of life.

As a leader in quality standards, Cordant is committed to developing solutions for payers, clinicians and organizations involved with substance use disorder, pain management and criminal justice agencies. Cordant is one of the only healthcare companies that offers monitoring and risk assessment tools through its innovative drug testing options and full-service, high-touch pharmacies, which specialize in the complex management and dispensing of controlled substances. Cordant’s testing protocols and digital case-management tools help clients become more efficient and effective in using drug testing programs to monitor patient adherence, reduce risk and improve patient outcomes.