SoCal rad provider faces fraud allegations
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According to court documents cited in the report, Diagnostic Labs allegedly provided discounts to skilled nursing facilities in exchange for business that could be charged to Medicare and Medi-Cal, California’s Medicaid program.
"This is an illegal kickback scheme, no more legal than if Diagnostic Labs, rather than providing below-cost discounts, had instead simply handed the [skilled nursing facilities] an envelope of cash," according to the lawsuit.
The suit was brought by two former Diagnostic Labs employees who claimed the company exploited the Medicare and Medi-Cal billing system by charging nursing homes as little as $1 per patient per day for lab and radiology services, according to California Watch. The skilled nursing facilities then referred outpatient work, including x-rays, to Diagnostic Labs, which billed the government programs for the maximum allowed amount, according to court documents cited in the report.
Specifically, the complaint alleged that Diagnostic Labs offered 69 percent discounts for radiology services as of March 2005.
The federal government collected $2.4 billion in settlements and judgments from healthcare fraud cases in 2011, according to California Watch.
Evan Godt, Writer
Evan joined TriMed in 2011, writing primarily for Health Imaging. Prior to diving into medical journalism, Evan worked for the Nine Network of Public Media in St. Louis. He also has worked in public relations and education. Evan studied journalism at the University of Missouri, with an emphasis on broadcast media.