Corporate Compliance

DOJ to intervene in stent fraud lawsuit

Compliance Monitor, June 22, 2011

The U.S. Department of Justice ordered a four-year-old whistleblower lawsuit involving two health systems to be unsealed and the complaint served within 120 days, according to a Healthleaders Media article.

The case, which involves two Jackson, TN-area cardiologists, two area health systems, and a radiologist, includes allegations of overutilization of cardiac medical services, kickbacks, and a self-referral scheme.

In June 2007, Wood M. Deming, MD, filed a suit individually and on behalf of Regional Cardiology Consultants PC charging Elie H. Korban, MD, with blatantly  overusing medical services, including angiography, angioplasty, and stenting with the intent to defraud government insurance programs.

The suit, which filed in the U.S. District Court for Western Tennessee, also charged Joel Perchik, MD, and executives at Jackson-Madison County General Hospital and Regional Hospital of Jackson with engaging in "a bilateral kickback and self-referral scheme." 

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