The Radiology Group CEO to pay $3.1M in false-claims case

The Radiology Group and its CEO Anand Lalaji will pay the U.S. and various states a combined $3.1 million to settle a federal civil fraud lawsuit over allegations that the company and Lalaji violated the False Claims Act.

In a statement, the U.S. Attorney's Office Southern District of New York said the settlement resolves claims that The Radiology Group and Lalaji fraudulently billed federal healthcare programs through a process of signing off on interpretation reports prepared by contractors in India. The contractors were not permitted to practice medicine in the U.S. or bill federal healthcare programs.

The Atlanta-based teleradiology firm failed to ensure that its U.S.-based, credentialed radiologists were conducting meaningful and adequate review of draft interpretations of radiology scans prepared by India-based contractors, according to the U.S. Department of Justice (DOJ). In addition, the company and Lalaji admitted that they submitted claims to federal healthcare programs where the radiologist who reviewed and interpreted imaging was someone other than the individual listed on the claim for reimbursement.

In connection with the filing of the lawsuit and settlement, the U.S. government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act, the DOJ said.

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