6th Circ. Nixes $11M FCA Medicare Violation Penalty

Law360, Washington (April 1, 2013, 4:28 PM EDT) -- The Sixth Circuit on Monday tossed an $11.1 million judgment against MedQuest Associates Inc. over its use of non-Medicare appointed physicians in diagnostic testing facilities for Medicare-claimed procedures, saying violations of participation conditions don't trigger the False Claims Act.

Although the judges noted they had little sympathy for MedQuest's plight after filing more than a thousand Medicare claims using physician supervisors that weren't Medicare-approved and filing claims under another physician's billing number, they determined the monetary penalties were inappropriate for the company's actions.

According to the...
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