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Indian-American Firm To Pay $15 Mn To Resolve Fraud Claims
NEW YORK: A diagnostic firm founded by an Indian-American physician, will pay over $15 million to the federal government to resolve allegations that it falsely billed for health tests that were never performed.
Diagnostic Imaging Group has agreed to pay 13.65 million dollars to the government and an additional 1.85 million dollars to New York and New Jersey to resolve the allegations.
The allegations were raised in three lawsuits brought by private individuals in 2009 and 2010 in federal courts under the whistleblower provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery.
The three whistleblowers would receive a total of about 2.77 million dollars under the settlement.
The claims settled by the agreement are allegations only, and there has been no determination of liability.
DIG was founded in 1985 by Mumbai-native Leena Doshi, who came to the US in 1973 and studied radiology at a city hospital. Doshi’s husband Nitin Doshi was a dentist before joining his wife to expand the radiology practice.
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Source: PTI
