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Long Island radiologist settles False Claims Act allegations for $15.5M

By Bryan Cohen | Feb 27, 2014

NEW YORK (Legal Newsline) - New York Attorney General Eric Schneiderman announced a multi-state and federal settlement on Tuesday with a Long Island radiology practice that allegedly submitted false claims to Medicaid and Medicare.

Doshi Diagnostic Imaging Services P.C. and Diagnostic Imaging Group LLC allegedly submitted false claims for diagnostic outpatient imaging services that were not ordered by a treating physician and not medically necessary. The companies also allegedly engaged in a kickback scheme in violation of state and federal laws.

In 2009 and 2010, private individuals brought three whistleblower lawsuits against the two companies pursuant to state and federal false claims acts. The settlement is based on the lawsuits.

"Fraud committed by medical practices costs New York taxpayers millions of dollars every year," Schneiderman said. "My office will find those who cheat the system, cheat New York taxpayers and cheat our most vulnerable patients. In addition to other fraud, these companies were suspected of paying kickbacks. This illegal behavior must - and will - stop."

Under the terms of the settlement, New York's Medicaid will recover $2,915,217. The companies will also pay $12,394,399 to the federal Medicare program and $190,384 to New Jersey's Medicaid program.

Between 1999 and 2010, Doshi Diagnostic Imaging and Diagnostic Imaging Group allegedly submitted false billings for expensive imaging services, making more than 40,000 false claims to the New York Medicaid program. The companies also allegedly signed service agreements with referring physicians under which the physicians were paid more than fair market value for supervising nuclear stress tests.

Doshi Diagnostic Imaging and Diagnostic Imaging Group also entered into a corporate integrity agreement with the Office of Inspector General of the U.S. Department of Health and Human Services.

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