Montana hospital settles lawsuit alleging radiology fraud

Bozeman Health, in Bozeman, Montana settled a nearly three year-old lawsuit alleging a hospital within its system made millions in fraudulent claims to government health care programs in a kickback scheme with Advanced Medical Imaging, a Bozeman radiology group.

The Bozeman Daily Chronicle reported the lawsuit, filed against Bozeman Deaconess Health Services, Bozeman Health Deaconess Hospital and Advanced Medical Imaging, was dismissed on Oct. 31 after all involved notified the judge that they had reached a settlement.

Although the health system settled, a Bozeman Health representative said the hospital denies all allegations, the Daily Chronicle reported.

The two individuals who brought the suit, Frank Rembert, MD, and Michael Paradise, MD, both former Bozeman radiologists, will receive an undisclosed amount. The U.S. and state will also receive a portion of the settlement, according to the story.

The lawsuit, brought under the False Claims Act, alleged Bozeman Health Deaconess Hospital received nearly $2 million per year, free services, majority ownership and more from Advanced Medical Imaging for patient referrals.

Read the entire story below.