One of the largest providers of diagnostic imaging services for doctors and hospitals has agreed to pay at least $1.2 million to settle an allegation of Medicaid billing fraud.
The fraud allegation came in a whistle-blower lawsuit filed by a Seattle doctor and a former company vice president.
The lawsuit was filed against Minnesota-based Center for Diagnostic Imaging five years ago. Earlier this week, the Department of Justice announced it intended to intervene in the case and was on the verge of settling the billing issue.
CDI President Tom Tomlinson gave The Seattle Times details of the proposed settlement.
Lawyers for the whistle-blowers Seattle radiologist Dr. Alexander Serra and Patricia West say the settlement amount is inadequate and they will fight for more in court.
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