$11M MedQuest Penalty Upheld In False Claims Case

Law360, New York (October 21, 2011, 11:09 PM EDT) -- A Tennessee federal judge on Friday stood by his August imposition of fines against MedQuest Associates Inc. over its use of non-Medicare approved physicians in diagnostic testing facilities, ruling that an $11.1 million award of damages was proportionate to the company's false claims.

Though he slightly modified the number of false claims that resulted from the company's violations, U.S. District Judge William Haynes Jr. maintained that his fines were well below the statutory maximum and dismissed the case, according to his order.

"Applying the relevant factors...
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