US Joins $522M FCA Suit Alleging Hospital Kickbacks

Law360, New York (July 9, 2013, 6:59 PM EDT) -- An Alabama hospital system flouted the False Claims Act by billing Medicare for $522 million in unnecessary medical imaging tests and paid kickbacks to doctors as rewards for enabling the scheme, according to a whistleblower suit unsealed Monday after the federal government intervened.

The complaint targets Infirmary Health System Inc. and one of its clinics, where contract doctors with Diagnostic Physicians Group PC allegedly falsified patient records so they would appear to be justified in ordering so-called nuclear stress tests that use radiopharmaceuticals to examine blood...
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