Medical company in La Habra to pay .3 million to settle allegations of kickbacks related to PET scans.

A medical imaging company based in La Habra, California, has agreed to a financial settlement totaling .3 million, with potential additional payments linked to future revenues, in response to allegations of violating federal anti-kickback laws. The announcement, made by the Justice Department, highlights a significant case within the health care sector involving improper financial incentives to medical professionals.

Modern Nuclear Inc., a company specializing in mobile positron emission tomography (PET) scans, is accused of submitting fraudulent claims to federal health care programs from September 2016 until January 2025. The allegations center around the company’s practice of paying excessive fees to cardiologists for supervising PET scans, a scenario seen as a clear violation of the Anti-Kickback Statute. This statute prohibits the exchange of financial rewards for patient referrals, a practice seen as undermining the integrity of medical decision-making.

According to the Justice Department, Modern Nuclear Inc. reportedly compensated referring cardiologists for their time in the office, even when those cardiologists were attending to other patients or were not present at all. Additionally, payments were alleged to have been made for services that either were not performed or that existed only on paper, thereby inflating the financial relationships between the company and the medical professionals.

MNI has asserted that it relied on an attorney’s assessment to gauge fair market value; however, the government characterized this assessment as flawed, leading to the eventual withdrawal of the consultant’s opinion.

As part of the settlement, Modern Nuclear Inc. will enter into a five-year corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General. This comprehensive agreement mandates the implementation of measures to ensure all arrangements with referring physicians comply with federal regulations, thereby aiming to mitigate future risks associated with kickbacks.

The resolution of this case underscores the ongoing efforts by federal agencies to protect the integrity of Medicare and other federal health care programs. Officials from the Department of Health and Human Services and the Department of Defense emphasized their commitment to holding providers accountable for actions that jeopardize patient care by prioritizing financial motives over medical necessities. These actions are viewed as crucial to maintaining the trust and efficacy of health care services available to military personnel, their families, and retirees.

Overall, this case exemplifies the legal protections in place intended to preserve the integrity of health care practices and to safeguard resources earmarked for legitimate medical needs.