Georgia-based Diagnostic Imaging Provider Hit for $11 million in damages and penalties for FCA violations

A judgment was entered against Medquest Associates for over $11 million in a false claims act lawsuit pending in Tennessee.  The judgment included $713,000 in treble damages and nearly $9 million in civil penalties.  The case against Medquest was based upon its practice at certain locations of submitting test results by physicians who were neither Medicare-approved nor qualified to certify the testing.  Medquest also used a predecessor’s Medicare provider number (rather than its own) to pay for tests.  Although Medquest appealed the fines imposed as excessive, the court rejected the appeal; noting that Medquest was a sophisticated operation that operated in reckless disregard for CMS rules.

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