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Medicare Fraud

Palm Beach, FL: (Apr-14-08) The US Attorney's Office brought charges against Dr. Fred Steinberg, a Palm Beach County radiologist and his entities, alleging that they billed for fictitious CT scans and improperly reported to patients' physicians as if they were done. Additionally he stands accused of doing CT scans and ultrasound exams that were not ordered by physicians and were not medically necessary. Federal officials stated that billing Medicare for tests that are either not medically necessary or not performed was a form of Medicare fraud, and thereby squandering scarce Medicare funds. The suit further alleged that the defendants illegally paid financial inducements to physicians for patient referrals.

As part of a settlement reached with the federal government, the Palm Beach County radiologist and his entities agreed to resolve the allegations with a $7 million payout. Federal officials claimed that the investigation stemmed from a whistleblower action under the False Claims Act brought by Dr. David Clayman, a former employee of one of the Steinberg practice groups. As per state laws, he will receive $1.75 million as his share of the recovery. [SOUTH FLORIDA BUSINESS JOURNAL: PALM BEACH COUNTY RADIOLOGIST SETTLES FRAUD ALLEGATIONS]

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Published on Apr-16-08


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