False Claims and Self-Referral Violations by Diagnostic Imaging Centers

On March 22, 2024, the Department of Justice announced that a Houston-area physician, Dr. Mohammad Athari, agreed pay $1.8M to resolve allegations that he, his clinical practice, and diagnostic imaging centers he owned violated the False Claims Act and Self-Referral Law. The U.S. Government, by and through qui tam relators, and the State of Texas, alleged that almost every Medicare or Medicaid patient referred to Dr. Athari’s diagnostic imaging centers had been referred to by Dr. Athari himself, through his clinical practice, in violation of the Self-Referral Law. Dr. Athari was also alleged to have performed unnecessary and unreasonable electroencephalograms (EEGs), electromyography tests (EMGs), and carotid Doppler ultrasounds that were not supported by the patients’ diagnoses or medical records, in violation of the False Claims Act. Dr. Athari and his diagnostic imaging centers were also alleged to have improperly utilized unlicensed and untrained personnel to perform and read the testing and interpret the test results.

The U.S. Attorney’s Office for the Southern District of Texas and the Texas Attorney General’s Office – Civil Medicaid Fraud Division conducted the investigation with assistance from the Department of Health and Human Services – Office of Inspector General. In announcing the settlement, U.S. Attorney Alamdar Hamdani stated that “[t]he Stark Law was enacted to ensure that a physician’s clinical judgment is not corrupted by improper financial incentives,” and that “physicians that bill government healthcare programs must ensure they are billing for medically necessary services and not just maximizing their own income.”

Medical professionals and facilities hoping to ensure full compliance with all healthcare rules and regulations should contact the experienced legal professionals at The Health Law Center.