Corporate Compliance

DOJ joins whistleblower suit against radiology clinic

Compliance Monitor, April 23, 2008

A Beverly Hills-based diagnostic clinic fraudulently billed Medicare for unnecessary tests, according to a Department of Justice (DOJ) press release.
The DOJ filed a complaint April 14 against The Oaks Diagnostics, Inc. (doing business as Advanced Radiology of Beverly Hills); its owner, Ronald Grusd, MD; and internal medicine practitioner Earl Fernando, MD. The allegations came to light when an Advanced Radiology employee filed a whistleblower lawsuit.
According to the suit, Medicare beneficiaries were recruited to undergo diagnostic tests they did not need at Advanced Radiology. Advanced Radiology allegedly submitted claims to Medicare for unnecessary diagnostic services rendered to 438 Medicare beneficiaries and Medicare paid Advanced Radiology more than $600,000 for these services.


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