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A class-action lawsuit has been filed against certain doctors who recommend MRIs and the operator of a radiology and imaging center over an alleged scam in which doctors would order MRIs, pay a small amount for them, charge patients' insurance companies large amounts, and then pocket the difference.
This lawsuit, filed against the operator of the radiology and imaging center, Dr. Fred Steinberg, is similar to other claims filed against more than 20 radiologists in the Chicago area.
It seeks an unspecified amount of penalties and damages for the doctors' violations of the Consumer Fraud and Deceptive Business Practices Act, Illinois' anti-kickback law, and also the Insurance Fraud Prevention Act.
The Shady Dealings
According to the suit, Dr. Steinberg offered doctors a deal in which they would pay as little as $400 for an MRI, bill the patient's insurance company as much as $2,300, and keep the difference. The imaging center operator would receive referrals in return.
This deal could earn doctors more than $30,000 a month. But when Dr. Steinberg offered a doctor the deal, he warned that doctor, “This rate is below our usual rate and I need you to keep this confidential.”
A Surge in MRIs
The profits some of these doctors are making through these scams could be the driving force between the recent surge in imaging procedures. Many believe medical imaging to be the fastest growing health-care service in the U.S.
Doctors in the United States ordered over 400 million imaging procedures last year, compared with only 281 million in 2000. But critics say it is hard to know how much of that growth has been a result of illegitimate referrals and shady business dealings, and how many are a result of a genuine rise in the need for imaging.
“I'm not sure anybody knows the scope of [the problem],” said Dr. David Levin, a radiologist at the Thomas Jefferson University Hospital. “It's big.”
Levin co-authored a study that found about $16 billion in unnecessary imaging was recommended by doctors who made money performing the tests themselves.
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Consumer fraud class action lawsuits are specifically designed to help individuals who have been similarly aggrieved to pursue a common goal – namely to hold the deceptive business accountable for any damages suffered. Thus, consumers who have been defrauded by a corporation or other entity may file a consumer fraud class action lawsuit on behalf of themselves and others to seek compensation for their shared grievance.
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