NY imaging group pays $16M to settle billing case

A radiology practice based in Long Island, NY, has settled charges that it submitted false Medicare claims, agreeing to pay a $15.5 million settlement.

Doshi Diagnostic Imaging Services and Diagnostic Imaging Group agreed to the payment to settle charges that it submitted false claims for Medicare and Medicaid for imaging services that weren't ordered by referring physicians and that weren't medically necessary. The companies had also been charged with a kickback scheme for referring patients.

Doshi Diagnostic Imaging Services is a radiology group based in Hicksville, NY, with 21 locations in New York City and Nassau County, NY. Diagnostic Imaging Group provides management and support services to the locations.

The settlement papers indicate that between 1999 and 2010 Doshi submitted claims for tests that weren't performed, including retroperitoneal ultrasounds, Doppler ultrasound scans, and pelvic x-rays. The company was also accused of billing for 3D multiplanar reconstructions that were never performed. Authorities claimed that more than 40,000 false claims were submitted to the New York Medicare program.

Doshi was charged with violating federal Stark laws barring payment for referrals because it submitted claims to the New York Medicaid program for nuclear stress studies in which referring physicians were paid more than fair market value for the scans.

Of the settlement, $12.4 million will go to the federal Medicare program, while New York's Medicaid program will get $2.9 million and New Jersey's Medicaid program will receive $190,000.

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