Center for Diagnostic Imaging, a St. Cloud, Minn.-based diagnostic imaging company with locations throughout the country, agreed to pay $1.2 million to settle allegations of Medicaid billing fraud, according to a Seattle Times report.
The payment settles a whistleblower suit by former CDI vice president Patricia West and a Seattle physician filed five years ago. The suit alleges CDI overbilled Medicare by upcoding procedures in order to receive bigger reimbursements. CDI also allegedly provided kickbacks to physicians for referrals and, in some cases, did not require written physician orders for some examinations, according to the suit. Ms. West further claims she was fired in retaliation for her expressing concern over the billing process.
The Department of Justice announced earlier this week that it intended to intervene, but only on the issue of the alleged overbilling.
The case and settlement are indicative of a growing number of government and private party initiated false claims actions. A great number of cases revolve around upcoding. Another substantial amount of such claims revolve around kickback and stark act payment type relationships.
Read the Seattle Times report on the CDI settlement payment.
Read other coverage on healthcare fraud:
- Government to Spend $116M Toward Expanding Medicare Fraud Strike Forces
- Investigation Reveals For-Hire Medicare Fraud Busters Take Too Long to Detect Fraud
- Pennsylvania's Mercy Health to Pay $7.9M for Overbilling Medicare
The payment settles a whistleblower suit by former CDI vice president Patricia West and a Seattle physician filed five years ago. The suit alleges CDI overbilled Medicare by upcoding procedures in order to receive bigger reimbursements. CDI also allegedly provided kickbacks to physicians for referrals and, in some cases, did not require written physician orders for some examinations, according to the suit. Ms. West further claims she was fired in retaliation for her expressing concern over the billing process.
The Department of Justice announced earlier this week that it intended to intervene, but only on the issue of the alleged overbilling.
The case and settlement are indicative of a growing number of government and private party initiated false claims actions. A great number of cases revolve around upcoding. Another substantial amount of such claims revolve around kickback and stark act payment type relationships.
Read the Seattle Times report on the CDI settlement payment.
Read other coverage on healthcare fraud:
- Government to Spend $116M Toward Expanding Medicare Fraud Strike Forces
- Investigation Reveals For-Hire Medicare Fraud Busters Take Too Long to Detect Fraud
- Pennsylvania's Mercy Health to Pay $7.9M for Overbilling Medicare