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Diagnostic Imaging Group Settles Medicare and Medicaid Fraud Claims for $15.5M

Diagnostic Imaging Group Settles Medicare and Medicaid Fraud Claims for $15.5M

The U.S. Department of Justice announced that it reached a $15.5 million settlement with Diagnostic Imaging Group (DIG) regarding allegations that DIG paid physician kickbacks for referrals and improperly billed Medicare and New Jersey and New York Medicaid Programs for procedures that were never performed.

The related lawsuits were filed by three whistleblowers who will receive more than $2.7 million in connection with the DIG settlement.  The whistleblowers filed civil actions against DIG pursuant to the qui tam provisions of the False Claims Act (FCA).  The FCA enables citizens to file a lawsuit on behalf of the government and to receive part of the recovery in exchange for sharing their knowledge of an alleged fraud committed against the government.  DIG, whose Doshi Diagnostic Imaging Services subsidiary operates its diagnostic testing facilities, will pay $13.65 million to the federal government and $1.85 million to New York and New Jersey.

“When health care providers pay kickbacks and submit false claims to Medicare, they not only deplete the Medicare Trust Fund, they undermine the integrity of the health care system,” said Assistant Attorney General Stuart F. Delery.  “The Justice Department will relentlessly pursue those who misuse federal health care funds for their own profit.”  U.S. Attorney  Paul J. Fishman added that “[u]nnecessary tests and the payment of kickbacks also siphon precious resources from our health care system.  The settlement we’re announcing today is an appropriate response to these unacceptable practices.”

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