Documents show Montana hospital paid $10M to settle radiology fraud lawsuit
Montana-based Bozeman Health Deaconess Hospital paid $10 million to settle a federal lawsuit accusing its radiology department of fraud, according to unsealed court documents reported by the Bozeman Daily Chronicle.
Filed nearly three years ago, the lawsuit alleged Bozeman Health made millions in fraudulent claims to government healthcare programs as part of an illegal operation to maintain a monopoly over imaging services in Gallatin County, Montana, according to the Daily Chronicle. That lawsuit was dismissed in October after the $10 million settlement was agreed upon.
According to the documents obtained by the Daily Chronicle, a local radiology group, Intercity Radiology, entertained the idea of opening an outpatient imaging center in Bozeman which would have offered lower prices, improved hours in a more convenient setting. However, the hospital convinced Intercity to open a joint venture within the hospital called Advanced Medical Imaging.
Bozeman planned to refer all outpatients to Advanced Medical Imaging, and the hospital would receive payment for all referrals.
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Matt joined Chicago’s TriMed team in 2018 covering all areas of health imaging after two years reporting on the hospital field. He holds a bachelor’s in English from UIC, and enjoys a good cup of coffee and an interesting documentary.