Mobile PET Scan Provider to Pay $8.3M in False Claims Act Kickback Settlement

A California-based mobile PET scan provider has agreed to pay more than $8.33 million to resolve allegations under the False Claims Act that it paid unlawful kickbacks to referring cardiologists in exchange for patient referrals. According to the Department of Justice, Modern Nuclear Inc. (MNI) allegedly paid physicians excessive supervision fees tied to PET scan services reimbursed by Medicare, TRICARE, and other federal healthcare programs. Federal authorities alleged those payments exceeded fair market value and violated the Anti-Kickback Statute.

The government contended that MNI compensated cardiologists for time spent treating other patients or even when they were not physically present at scan locations, while also paying for additional services that were rarely or never performed. Prosecutors further alleged that the company relied on a flawed fair market value opinion that was later withdrawn. As part of the resolution, MNI entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), requiring enhanced compliance oversight and independent review measures.

The settlement arose from a qui tam whistleblower lawsuit filed under the False Claims Act, and the relators are expected to receive a share of the recovery. The case highlights the government’s continued focus on investigating healthcare fraud schemes involving unlawful referral arrangements and improper financial incentives that may influence medical decision-making.