A judgment was entered against Medquest Associates for over $11 million in a false claims act lawsuit pending in Tennessee. The judgment included $713,000 in treble damages and nearly $9 million in civil penalties. The case against Medquest was based upon its practice at certain locations of submitting test results by physicians who were neither Medicare-approved nor qualified to certify the testing. Medquest also used a predecessor’s Medicare provider number (rather than its own) to pay for tests. Although Medquest appealed the fines imposed as excessive, the court rejected the appeal; noting that Medquest was a sophisticated operation that operated in reckless disregard for CMS rules.
For more information see: http://www.bizjournals.com/nashville/news/2011/10/25/medquest-assoicates-order-to-pay-11.html