CDI Gets Stark Act Claim Tossed In Medicare FCA Suit

Law360, New York (August 12, 2011, 7:31 PM EDT) -- A Washington federal judge on Friday threw out an ex-Center for Diagnostic Imaging Inc. employee's Stark Act claim alleging the company paid kickbacks for Medicare and Medicaid referrals, but upheld a False Claims Act claim challenged by the radiology center.

The suit alleges that CDI paid physicians groups for Medicare and Medicaid referrals, in violation of the FCA and other laws.

Judge Robert S. Lasnik dismissed a claim made under the Stark Act, which prohibits physicians from referring Medicare patients to any entity in which they...
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