Univ. of Missouri to pay $2.2M fraud settlement

University of Missouri Health Care (MU Health) has agreed to pay the federal government $2.2 million to settle a radiology fraud claim.

The payment resolves an investigation initiated in 2011 by the U.S. attorney's office in Kansas City. It reimburses Medicare and other federal healthcare programs for fraudulent charges billed by two former MU Health radiologists, Dr. Kenneth Rall and Dr. Michael Richards.

MU Health conducted its own investigation as well; it found that between March 2010 and November 2011, Rall and Richards sometimes claimed they had reviewed x-rays initially interpreted by residents when in fact they had not. (Medicare requires attending radiologists to review x-rays read by residents for the exams to be reimbursed.) The two radiologists were dismissed from their positions.

Out of more than 14,000 patients who could have been affected by the actions of the two radiologists, MU Health's inquiry identified 30 patients potentially at risk. MU Health was able to find and follow up on 25 of these individuals, it said.

The settlement also includes a five-year integrity agreement with the Office of Inspector General for the U.S. Department of Health and Human Services, according to MU Health.

"We consider [this settlement] to be a fair resolution," said Hank Foley, interim MU chancellor and interim executive vice chancellor for health affairs, in a statement released by MU Health.

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