Crime & Safety
Parsippany Medical Co. To Pay $95K For Alleged Kickbacks: Feds
The sonography company reportedly paid doctors kickbacks in exchange for patient referrals, federal officials said.
![The sonography company reportedly paid doctors kickbacks in exchange for patient referrals, federal officials said.](https://patch.com/img/cdn20/shutterstock/24287441/20230819/122550/styles/patch_image/public/shutterstock-1688062612-1___19122403744.jpg)
PARSIPPANY, NJ - A Morris County sonography company has agreed to shell out $95,000 to feds to resolve allegations of receiving kickbacks in exchange for patient referrals, federal authorities said.
As part of the settlement, which charged Parsippany-based H&D Sonography LLC, the company must maintain good conduct for three years to avoid criminal conviction, U.S. Attorney Philip R. Sellinger said in a statement.
According to admissions filed by H&D in the settlement, from January 2015 through December 2018, H&D and others agreed to pay rent “in excess of reasonable value” to doctors in exchange for patient referrals for diagnostic testing, which were then billed to Medicare.
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These agreements resulted in "inflated" rent payments from H&D to the physicians, purportedly to use space in the doctors' offices each week in order to perform diagnostic tests.
“H&D agreed to pay for significantly more hours than the technicians actually used, as a method to funnel payments to physicians, federal officials said. “H&D structured the payments as sublease payments for the physicians’ shared offices.”
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The civil allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act brought by a physician. The whistleblower will receive approximately 17 percent of the proceeds of the civil settlement, federal officials said.
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