Michigan Radiology Group Accused of Kickbacks

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The federal government is seeking $150 million in damages and penalties from a Michigan radiology group for alleged anti-kickback violations.

The complaint by the U.S. Attorney’s office in Michigan claims that Universal Imaging Inc. generated 90 percent of its business by paying kickbacks to physicians and violated numerous Medicare rules related to proper supervision of diagnostic tests.

The government also alleges the radiology group operated a non-profit in name only by transferring equipment to a for-profit entity in order to circumvent rules under non-profits.

The U.S. Attorney’s office also announced a related $1.56 million settlement with 14 physicians who reportedly accepted the kickbacks.

The case was brought forward after a radiologist and his wife who both worked at Universal filed a qui tam whistleblower suit under the False Claims Act. Those filing such cases typically receive 15 to 25 percent of the recovered damages.

To read the press release click here.