Radiology group will pay over $5M to settle allegations it bribed referrers
A radiology group will pay $5.25 million to settle allegations it violated the False Claims Act by bribing physicians with meals, sports tickets, and other gifts to induce referrals.
The U.S. Attorney’s Office for the Northern District of Georgia announced the deal with Atlanta-based American Health Imaging and its former CEO on Monday. AHI—part of the larger, private equity-backed US Radiology Specialists—also allegedly inked “above fair market” personal services agreements with referrers to gain their business.
“The use of inducements to obtain referrals from medical professionals jeopardizes the integrity of our healthcare programs,” U.S. Attorney Ryan K. Buchanan said in a Dec. 2 announcement. “This settlement demonstrates our office’s commitment to hold accountable providers who ignore Medicare and Medicaid’s strict prohibition against using kickbacks for personal greed.”
Between 2011 to 2019, American Health Imaging allegedly doled out gifts of alcohol, gas cards and free scans—all to generate referrals for its diagnostic imaging services, authorities charge. The practice also purportedly held fishing trips, happy hours, and sponsored “open houses” at physician offices, with the latter serving “no discernible educational purpose.” Alleged bribes also included tickets to concerts and the Southeastern Conference Football Championship, along with outings to nail salons and monthly dinners. Contracts purportedly paid physicians exorbitant amounts to interpret scans they had referred to AHI.
Tanya Benjamin, a former employee at the practice, surfaced the allegations and stands to collect a portion of the proceeds under whistleblower provisions of the False Claims Act. The claims resolved by the settlement are allegations only, authorities emphasized, with no determination of liability.
American Health Imaging was founded in 1998 by Scott Arant and in 2019 joined Welsh, Carson, Anderson & Stowe-supported US Radiology Specialists, which is based in Raleigh, North Carolina. AHI now operates over 45 diagnostic imaging centers across Alabama, Georgia, Florida, South Carolina and Texas, according to its website. Arant, also named in the settlement, served as the practice’s CEO for 24 years before semi-retiring in 2022.
A USRS spokesperson shared a statement on Tuesday in response to the news.
“US Radiology is aware of the lawsuit that has now been settled and that related to events pre-dating American Health Imaging joining our company,” the representative told Radiology Business. “We are pleased this matter is concluded and look forward to continuing to provide best-in-class patient care at all our American Health Imaging locations.”
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.