Whistleblower suit targets center's leasing deals

Dear AuntMinnie Member,

In what may be the first lawsuit of its kind, a radiologist has filed a civil lawsuit against a Florida imaging practice that formerly employed him, charging that the center used leasing arrangements and coding practices that are barred under U.S. Medicare rules.

The litigation claims that an imaging practice in Boca Raton set up leasing deals with referring physicians that were a "cover for unlawful kickbacks," according to an article we're featuring this week by staff writer Tracie L. Thompson in our Imaging Center Digital Community. The suit also alleges that the practice "upcoded" imaging procedures to increase its Medicare reimbursement -- claims that are denied by the imaging practice.

The lawsuit is occurring against a backdrop of increasing federal scrutiny of leasing deals that involve imaging practices contracting their equipment and reading services to referring physicians, who then bill payors directly and keep the difference between the reimbursement and the leasing fees they pay the imaging practice.

Some legal experts believe these deals can violate federal anti-kickback laws barring physicians from receiving compensation for referrals. Others see the arrangements as simply examples of the entrepreneurial spirit at work. Either way, pressure is growing on radiology practices to participate in such arrangements as they become more commonplace.

The federal government hasn't become involved in the Boca Raton case, but that could change, according to the article. Read all about it by clicking here, or by visiting our Imaging Center Digital Community, at centers.auntminnie.com.

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