November 15, 2016
New Jersey-based remote cardiac monitoring company
MedNet Inc., and a subsidiary of BioTelemetry Inc., agreed to pay more than $1.35 million to resolve allegations that it paid kickbacks to induce physicians to use the company’s cardiac monitoring services. According to the government, from March 2006 through January 2014, before BioTelemetry acquired MedNet, MedNet entered into “fee-for-service” or “direct-bill” agreements with certain hospital and physician clinic customers which allowed them to bill Medicare directly for these same services and retain the reimbursements they received which exceeded the fees that MedNet charged them. The government alleged that the remuneration MedNet provided in connection with the agreements was illegal remuneration under the Anti-Kickback Statute. The allegations originated in a whistleblower lawsuit filed under the
qui tam provisions of the False Claims Act.
DOJ (DNJ)