Corporate Compliance

Illinois AG to refile suit against MRI Centers

Compliance Monitor, September 19, 2007

Illinois Attorney General (AG) Lisa Madigan will refile a suit against more than 20 magnetic resonance imaging centers after the first case was dismissed because the judge wanted more specific and detailed allegations.

The AG claims more than 20 Chicago-area radiology centers paid illegal kickbacks to doctors in order to earn more referrals. According to the suit, the doctors paid the centers a reduced rate for MRIs and other services but charged patients' health insurers a higher rate, keeping the difference.

The MRIs were performed at the radiology centers, though the financial arrangement made it appear that the doctors were in charge of the equipment and billed the services as their own, the suit said.

The lawsuit alleges the defendants violated the Consumer Fraud and Deceptive Business Practices Act, Illinois' anti-kickback law, and the Insurance Fraud Prevention Act. It seeks an unspecified restitution, damages, and penalties.

Click here to read the original lawsuit.

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