A California mobile PET scan provider is resolving a long-running U.S. healthcare fraud case tied to physician referral payments. The settlement covers allegations that compensation paid to cardiologists for scan supervision exceeded fair market value and led to false claims billed to federal health programs.

Highlights

• Modern Nuclear Inc. will pay $8,334,350.71 plus future contingent amounts to resolve allegations of illegal kickbacks and false claims to federal healthcare programs.
• Alleged violations include paying cardiologists above-fair-market fees for supervising PET scans from Sept. 1, 2016, to Jan. 14, 2025, resulting in distorted medical decision-making and higher costs for Medicare and TRICARE.
• Modern Nuclear must implement a five-year Corporate Integrity Agreement with compliance monitoring and pay relators 16% of the total recovery from the qui tam case.

Settlement terms and alleged referral scheme

As reported by the U.S. Department of Justice, Modern Nuclear Inc. has agreed to pay $8,334,350.71, plus additional amounts tied to future revenues, to resolve allegations that it violated the False Claims Act through unlawful kickbacks to referring cardiologists. The company, based in La Habra, California, provides mobile positron emission tomography, or PET, scans, and the settlement is based on its ability to pay.

The United States alleges that between Sept. 1, 2016, and Jan. 14, 2025, the company knowingly submitted false or fraudulent claims to federal...

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