Med tech company to pay $8.3M for cardiologist kickback scheme

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A La Habra, Calif.-based mobile PET scan provider has agreed to pay more than $8.3 million to resolve False Claims Act allegations of paying illegal kickbacks to referring cardiologists, the Justice Department said in a May 1 news release.

Between September 2016 and January 2025, Modern Nuclear allegedly paid above-fair market value supervision fees to cardiologists who referred patients for PET scans, including payments for time spent caring for other patients or while not on site. The settlement amount is based on MNI’s ability to pay, with additional amounts tied to future revenues.

The case was initiated through a whistleblower complaint filed by two relators, who will receive 16% of the total recovery. In connection with the settlement, MNI entered into a five-year Corporate Integrity Agreement with HHS-OIG requiring compliance measures and an independent compliance review.

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