The owner of a New Jersey imaging center that allegedly paid healthcare providers for patient referrals in violation of federal law has pleaded guilty in the case.
Federal investigators said that Dr. Ashokkumar Babaria pled guilty in a U.S. District Court to one count of offering and paying doctors and other healthcare providers for patient referrals. Babaria is the sixth person in the government's investigation of Orange Community MRI to plead guilty.
Babaria, a radiologist, was the medical director and owner of the center, which made nearly $2 million in revenues based on patient referrals for which cash kickbacks were paid. Investigators said Babaria negotiated, approved, and paid kickbacks to referring healthcare providers, and also provided cash to his subordinates to pay for referrals.
Federal authorities said Babaria set up kickback arrangements such as one in which Orange MRI would pay a specific doctor roughly $100 for each of his or her MRI referrals, and the doctor in turn agreed to refer as many as 20 MRI scans to Orange MRI each month. Babaria admitted approving in 2009 a kickback arrangement in which Orange MRI would pay a specific doctor $75 for each MRI referral and $25 for each ultrasound and dual-energy x-ray absorptiometry (DEXA) referral.
The antikickback charge to which Babaria pled guilty is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for January 30, 2013.
