Corporate Compliance

CA cardiac company to pay US $3.6M for fraudulent billing

Compliance Monitor, July 14, 2010

National Cardio Labs LLC will pay $3.6 million to resolve allegations of fraudulently billing Medicare, Tricare, and various health insurance providers, according to a Department of Justice (DOJ) press release.

The lawsuit alleges National, a Los Angeles-based company, submitted false healthcare claims for various cardiac and blood pressure diagnostic tests that were never provided. National allegedly re-billed for services already provided as well as unbundled services, procedures, and supplies to obtain additional reimbursement, according to the DOJ.

Whistleblowers James Cast, former biller at National, and Stanton Crowley, former technician, filed this case under the qui tam provisions of the False Claims Act and will receive approximately $1.1 million from the recovery.

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