LabCorp 2015 Annual Report Download - page 40

Index
CDD operates on a global scale. The table below summarizes certain information as to CDD's principal operating and administrative facilities as of
December 31, 2015.
 
Primary Facilities:
Mechelen, Belgium Leased
Beijing, China Leased
Shanghai, China (2) Owned/Leased
Muenster, Germany Owned
Singapore Leased
Harrogate, United Kingdom Owned
Leeds, United Kingdom Owned
Maidenhead, United Kingdom Leased
Indianapolis, Indiana Leased
Greenfield, Indiana Owned
Cranford, New Jersey Leased
Princeton, New Jersey Leased
West Trenton, New Jersey Leased
Denver, Pennsylvania Owned
Alice, Texas Owned
Chantilly, Virginia Leased
Cumberland, Virginia Owned
Geneva, Switzerland Leased
Madison, Wisconsin Owned
All of the Company’s primary laboratory and drug development facilities have been built or improved for the single purpose of providing clinical
laboratory testing or drug development services. The Company believes that these facilities are suitable and adequate and have sufficient production
capacity for its currently foreseeable level of operations. The Company believes that if it were unable to renew a lease or if a lease were to be terminated on
any of the facilities it presently leases, it could find alternate space at competitive market rates and readily relocate its operations to such new locations
without material disruption to its operations.
 
The Company is involved from time to time in various claims and legal actions, including arbitrations, class actions, and other litigation (including those
described in more detail below), arising in the ordinary course of business. Some of these actions involve claims that are substantial in amount. These matters
include, but are not limited to, intellectual property disputes, commercial and contract disputes, professional liability, breach of contract, employee-related
matters and inquiries, including subpoenas and other civil investigative demands, from governmental agencies and Medicare or Medicaid payers and MCOs
reviewing billing practices or requesting comment on allegations of billing irregularities that are brought to their attention through billing audits or third
parties. The Company receives civil investigative demands or other inquiries from various governmental bodies in the ordinary course of its business. Such
inquiries can relate to the Company or other healthcare providers. The Company works cooperatively to respond to appropriate requests for information.
The Company also is named from time to time in suits brought under the qui tam provisions of the False Claims Act and comparable state laws. These
suits typically allege that the Company has made false statements and/or certifications in connection with claims for payment from U.S. or state healthcare
programs. The suits may remain under seal (hence, unknown to the Company) for some time while the government decides whether to intervene on behalf of
the qui tam plaintiff. Such claims are an inevitable part of doing business in the healthcare field today.
The Company believes that it is in compliance in all material respects with all statutes, regulations and other requirements applicable to its clinical
laboratory operations and drug development support services. The healthcare diagnostics and drug development industries are, however, subject to extensive
regulation, and the courts have not interpreted many of the applicable statutes and regulations. There can be no assurance, therefore, that the applicable
statutes and regulations will not be interpreted or applied by a prosecutorial, regulatory or judicial authority in a manner that would adversely affect the
Company. Potential sanctions for violation of these statutes and regulations include significant fines, the loss of various licenses, certificates and
authorizations, and/or exclusion from participation in government programs.
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