Mobile PET Scan Provider to Pay $8.33 Million to Resolve Allegations of False Claims Act Violations Based on Unlawful Kickbacks to Medical Practices

Why It Matters

The settlement signals intensified DOJ scrutiny of illegal referral incentives, protecting Medicare funds and reinforcing compliance expectations for diagnostic service providers.

Key Takeaways

• MNI pays $8.33M to settle False Claims Act kickback allegations
• Settlement includes future revenue payments and five‑year compliance agreement
• Relators receive 16% of recovery, highlighting qui tam incentives
• Case underscores DOJ focus on anti‑kickback enforcement in Medicare
• Corporate Integrity Agreement mandates independent compliance monitoring for MNI

Pulse Analysis

The mobile positron emission tomography (PET) market has expanded rapidly as hospitals outsource high‑cost imaging to specialized fleets. While this model improves access, it also creates fertile ground for referral arrangements that can cross legal lines. The Anti‑Kickback Statute prohibits any remuneration that could influence a physician’s decision to refer patients for federally reimbursed services. In Modern Nuclear’s case, the Department of Justice alleged that cardiologists were paid fees far exceeding fair market value for merely supervising scans, a classic kickback scheme that inflates Medicare costs.

Under the False Claims Act, whistleblowers—known as relators—can sue on behalf of the government and share in any recovery. Here, two relators triggered a qui tam action that resulted in an $8.33 million civil settlement, with 16% earmarked for them. Beyond the monetary penalty, Modern Nuclear entered a five‑year Corporate Integrity Agreement with HHS‑OIG, obligating the company to install an independent compliance expert and to monitor all physician‑referral contracts. This framework aims to prevent future violations by enforcing transparent fee structures and regular audits, setting a precedent for other mobile imaging firms.

The broader implication is a clear message to the health‑care industry: aggressive enforcement of anti‑kickback rules will continue, especially in high‑revenue specialties like cardiac imaging. Providers must reassess fee arrangements, document fair market value justifications, and invest in compliance programs that can withstand federal scrutiny. As Medicare and other federal programs remain prime targets for fraud, companies that proactively align with AKS guidelines will mitigate legal risk and preserve reputational capital in an increasingly vigilant regulatory environment.