Radiology center pays $8.8 million to settle Medicare fraud case over procedures

Rose Radiology Centers Inc. has agreed to pay $8.71 million to the federal government to resolve allegations that it violated the False Claims Act by billing health care programs for procedures that were not medically necessary or furnished in violation of applicable federal regulations, the U.S. Attorney’s Office said Friday.

The settlement comes out of two lawsuits brought under a provision of the False Claims Act that allows private parties to sue on behalf of the government and to share in any recovery. Those plaintiffs will receive a combined $1.7 million as their share of the recovery in this case, the U.S. Attorney’s Office said.

Allegations included:

  • Rose Radiology knowingly submitted false claims by administering contrast dye during MRI scans on patients without proper physician supervision. Contrast dye is a chemical that is injected intravenously into the body in order to make certain tissues, abnormalities, or disease processes more clearly visible on an MRI.
  • Rose Radiology improperly billed for radiology procedures referred by chiropractors.
  • Rose Radiology performed and billed for radiology procedures that were never ordered by the patients’ providers.
  • Rose Radiology engaged in the practice of giving kickbacks to referring physicians for the purpose of soliciting radiology referrals from these physicians.

The claims resolved by the settlement are allegations only, and there has been no determination of liability, the U.S. Attorney’s Office said.