Bozeman Health Deaconess Hospital and Advanced Medical Imaging have requested that a federal judge dismiss a suit alleging their involvement in a kickback scheme that resulted in millions of dollars worth of fraudulent claims to government healthcare programs, according to a December 2 report by the Bozeman Daily Chronicle.
Attorneys for the hospital and the radiology practice filed for dismissal on November 21, stating that the plaintiffs did not sufficiently show that Bozeman Health and Advanced Medical Imaging violated the federal antikickback statute, the Chronicle said. The suit was brought under the False Claims Act by former Bozeman radiologists Dr. Frank Rembert and Dr. Michael Paradise.
The suit alleges that Bozeman Health had an exclusive contract to provide radiology services with Intercity Radiology, a radiology group it co-owns with Advanced Medical Imaging. The deal included a noncompete clause, the Chronicle reported. Intercity Radiology had considered opening an outpatient imaging center in Bozeman, but Bozeman Health persuaded it to open a joint venture at the hospital, which was folded into Advanced Medical Imaging; Bozeman Health owned 77.5% of the entity and intended to refer all outpatient MR, CT, and mammography exams to it.
Bozeman Health and Advanced Medical Imaging attorneys argue that the claims of Intercity Radiology intending to open its own center and signing a noncompete agreement in return for referrals are false, according to the Chronicle.
