#United States #Atlanta #American Health Imaging #Scott Arant #Whistleblower Case

Settlement of Whistleblower Allegations Against American Health Imaging

American Health Imaging, Inc. (AHI) and its former CEO Scott Arant have agreed to pay $5.25 million to settle allegations of submitting false claims to Medicare and Georgia Medicaid. The settlement, announced by the law firm Moss & Gilmore LLP, resolves a whistleblower lawsuit brought against the company and Arant in connection with violations of the False Claims Act (FCA) and the Georgia False Medicaid Claims Act. This case underscores ongoing concerns regarding fraudulent behavior in the healthcare sector and the effectiveness of whistleblower protections.

Background of the Case

The lawsuit, which was initiated by former employee Tanya Benjamin, alleged that AHI engaged in unethical practices from 2011 to 2019 aimed at boosting referrals for diagnostic imaging services. According to the U.S. Department of Justice (DOJ), these practices included offering a variety of inducements—such as tickets to sporting events, fishing trips, and gifts like alcohol and gas cards. These promotions often lacked a credible educational purpose, raising red flags about their legitimacy.

Additionally, the DOJ flagged AHI's agreements with referring physicians as violations of fair market practices. Physicians were reportedly paid above market rates for interpreting scans they refer, a practice that potentially violates the Anti-Kickback Statute.

Legal Implications

Though AHI and Arant did not admit to wrongdoing in the settlement, the ramifications of the allegations highlight the importance of compliance within the healthcare industry. The settlement amount will be payable to the DOJ, and Benjamin has been awarded 17% of the amount, further encouraging whistleblowers to report similar practices in the future.

Raymond L. Moss of Moss & Gilmore LLP represented Benjamin and emphasized the role of whistleblowers in maintaining integrity within the healthcare system.