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MRI Company Resolves False Claims Act Allegations

August 30, 2013

A qui tam suit brought under the False Claims Act’s whistleblower provision by Dr. Patrick Lynch, a local radiologist, has resulted in Imagimed, LLC, which operates fifteen magnetic resonance imaging (MRI) facilities, it’s owners, William B. Wolf III and Dr. Timothy J. Greenan, and former chief radiologist, Dr. Steven Winter, agreeing to resolve claims that they submitted false claims to federal healthcare programs according to a DoJ press release.  While federal law requires that a MRI with contrast dye be supervised by a qualified physician, Defendants performed contrast MRIs without physician supervision and billed federal healthcare programs for those services.  The suit also alleged that Defendants violated the Stark Law and the Anti-Kickback Statute by providing kickbacks to physicians who referred patients to Imagimed.  These kickbacks included sham on-call arrangements, pre-authorization services without charge, and various gifts to physicians.

This case is an example of our commitment to using all of the remedies available, including civil actions under the False Claims Act, to ensure patient safety and combat healthcare fraud.  Stripping away the profit motive for circumventing physician supervision requirements has both a remedial and a deterrent effect.  The settlement announced today advances our critical interest in both the integrity of our healthcare system and the safe delivery of medical services. U.S. Attorney for the Northern District of New York, Richard S. Hartunian.

The Defendants have agreed to resolve the allegations that they submitted false claims for $3.57 million.  Since January of 2009, the DoJ has recovered more than $10.8 billion in False Claims Act cases involving fraud against federal health care programs.

To report healthcare fraud, please contact Frohsin & Barger.

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