Seeger Weiss, in partnership with the U.S. Department of Justice, the United States Attorney for the District of New Jersey, and the Medicaid Fraud Units of the Attorneys General of New York and New Jersey, reached a $15.5 million dollar settlement in an unsealed healthcare fraud case against Doshi Diagnostic Imaging Services, P.C. and Diagnostic Imaging Group, LLC.
Founded by radiologist Dr. Leena Doshi and her husband Nitin, Doshi Diagnostic Imaging and Diagnostic Imaging Group are privately-held companies that own and operate some 38 radiological imaging centers in New York, New Jersey, and (formerly) Florida.
Seeger Weiss represented one of the lead whistleblowers, or “relators,” in the lawsuit, which was filed under seal in January 2010 in federal district court in New Jersey. The relator alleged that the Doshi companies systemically entered into “Service Agreements” with doctors who agreed to refer their patients to Doshi facilities for diagnostic tests. Because these “Service Agreements” paid the referring doctors based on the number of patients referred, the relator alleged that the Doshi companies had violated the federal Anti-Kickback Statute, the federal False Claims Act, and the False Claims Acts of New York and New Jersey, by billing Medicare and Medicaid for those diagnostic services.
The relator’s lawsuit triggered an investigation by the U.S. Department of Justice, the United States Attorney’s Office for the District of New Jersey, and the Office of Inspector General of the U.S. Department of Health & Human Services, ultimately resulting in the settlement announced today. Under the whistleblower provisions of the federal and state False Claims Acts, the relator will receive an award of approximately $1 million.