PremierTox Laboratory, which has its principal place of business in Russell Springs, has announced a successful resolution to a state and federal review of its business and testing practices. PremierTox, two doctors and several addiction-recovery centers have agreed to pay the federal government $15.75 million to resolve allegations that they took part in a fraud that involved urine tests, according to a news release from U.S. Attorney Kerry B. Harvey.

The allegations say they fraudulently billed health care programs for medically unnecessary and excessive urine tests. Under federal law, health care programs only reimburse health care providers the services that are deemed medically necessary.

Through the comprehensive agreement, which includes more than $15 million to Medicaid programs, PremierTox said they will continue to provide essential laboratory analysis in support of vital national drug control efforts.

“Today’s agreement ensures PremierTox’s strong future,” said PremierTox CEO Robert Donnell. “We appreciate the full cooperation of federal and state agencies in reaching this positive outcome, benefitting our customers who serve at-risk populations, and ensuring continued opportunity for PremierTox’s many employees around the country.”

Those responsible for the judgment, according to the release from Harvey, are PremierTox 2.0 LLC; Addixxion Recovery of Kentucky LLC, which operates under the name SelfRefind in several Kentucky cities; and doctors Bryan Wood and Robin Peavler.

Under this agreement, PremierTox will continue to be provider of patient compliance monitoring for physicians across the country and agrees to remit a portion of payments received in 2011-12 to enhance Medicaid’s continuing services for vulnerable citizens.

“As a proud, growing Kentucky business, providing over 100 jobs in its rural location and additional employment opportunities nationwide, PremierTox supports the right of the community to demand prescription compliance and require patient monitoring,” Donnell said.

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Tourism Director Janette Marson asked that tourism taxation laws be strengthened and enforced at the February meeting of the Russell County Fiscal Court a week ago Monday night, February 10.

“This has nothing to do with raising taxes at all, and it only applies to the lodging facilities,” said Marson, making it clear that it is not new taxation but increases penalties due to non-compliance.

“The majority of it is in regard to penalties,” she said, expressing that penalties are so low that businesses are disregarding them.

“Thirty-two (32) percent of our lodging facilities here in Russell County either are very, very late on their taxes, or not paid at all,” Marson said. “In one case in years.”

Marson said the amendments to the taxing ordinance were unanimously approved by the local tourism board.

County Attorney Kevin Shearer then read the amendments to ordinance 95-6. The main changes outlined:

* The makeup and appointment of the seven member tourism board.

* Bolstering of taxation registration, including the enactment of a $500 fine for facilities not getting a registration certificate within allotted time, with each day of operation signifying a separate offense. The transient room tax is three percent of gross rental and must be paid monthly.

* The amendment clarifies there are no exceptions to the transient tax.

* Delinquent payments are assessed a penalty of the greater of $100 or 10 percent of the taxes due with a maximum of 20 percent for each 30 days overdue.

* Strengthening of required record keeping rules and open access given to any tourism board member.

* Strengthening of collection procedures, including liens and clarification of responsibility.

This was a first reading of the ordinance amendments and is scheduled to be voted on at next month’s meeting of the fiscal court.