Corporate Compliance

CA radiology clinic pays $647,000 to resolve False Claims violations

Compliance Monitor, July 7, 2010

The Oaks Diagnostics, Inc., owners of Advanced Radiology of Beverly Hills, paid the federal government $647,000 to settle allegations that the clinic billed Medicare for unnecessary radiological tests, according to a Department of Justice (DOJ) press release.

The settlement dismisses a civil lawsuit against Advanced Radiology and its owner, Ronald Grusd, MD. Advanced Radiology contractor, Nordelyn Lowder, recruited Medicare beneficiaries between 1999 and 2002 to undergo unneeded diagnostic tests such as CT scans and MRIs, according to the DOJ. Lowder, sentenced in June 2008, is serving a 20 month prison sentence and was court ordered to pay approximately $426,000 in restitution.

A former Advanced Radiology employee filed the case in 2003 under the qui tam provisions of the False Claims Act.

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