Modern Nuclear Inc. (MNI), a La Habra, California-based provider of mobile cardiac positron emission tomography (PET) scans operating since 1988, has agreed to pay $8,334,350.71, plus additional amounts tied to future revenues, to resolve Department of Justice allegations that it paid unlawful kickbacks to referring cardiologists in violation of the Anti-Kickback Statute and the False Claims Act. The scheme, as alleged by the United States, ran from September 1, 2016 through January 14, 2025, a period of nearly nine years during which MNI submitted false or fraudulent claims to federal healthcare programs including Medicare. The core allegation is straightforward: MNI paid cardiologists fees well above fair market value, framed as supervision compensation for PET scans those same cardiologists had referred to MNI. In practice, those fees were paid even when the cardiologists were not on site, or were in their own offices seeing other patients, or were being compensated for additional services they never actually provided. The settlement is structured as an ability-to-pay arrangement, meaning the DOJ determined that MNI cannot pay the full value of the alleged harm and accepted a reduced figure accordingly.
The MNI settlement follows a pattern the DOJ has pursued across the mobile cardiac imaging industry for more than a decade. The mechanics of the alleged kickback arrangement are identical to those that produced an $85M settlement from Cardiac Imaging Inc. (CII) and its...
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