Kickback case settlement

Illegal Kickback Case to Be Settled

January 21, 2009
by Joan Trombetti, Writer
As part of a settlement by an operator of 14 Chicago-area imaging centers allegedly having given illegal kickbacks to doctors to win patient referrals, MIDI LCC, of Virginia will pay $1.2 million. A large chunk of the settlement will go toward funding state grants for low-income patient care. Also, it will no longer be able to pay referring doctors what is known as "lease agreements" or "technical service agreements."

The state attorney general's office said these agreements served as guises that paid doctors to refer patients to MIDI's "Open Advanced MRI" facilities.

More than 20 Chicago-area radiology centers, of which MIDI was the largest, were discovered in a widespread kickback scheme. Some smaller centers have already settled.

The lawsuit alleged that the defendant MRI centers violated the Illinois Consumer Fraud and Deceptive Business Practices Act, the state's antikickback law, and the insurance Fraud Prevention Act. However, there were no findings of any wrongdoing.

Read the report at:
http://www.chicagotribune.com/business/chi-biz-mri-kickbacks-jan14,0,1026976.story