An Illinois imaging provider and its CEO have agreed to pay $85.5 million to resolve allegations that they participated in a complex kickback scheme, the U.S. Department of Justice (DOJ) announced on Oct. 10.
Cardiac Imaging Inc. (CII) and its founder and CEO, Florida resident Sam Kancherlapalli, were accused of paying referring cardiologists kickbacks of $500 or more per hour to supervise PET scans referred to CII. According to the DOJ, those fees “substantially exceeded fair market value,” and cardiologists were allegedly compensated for “additional services beyond supervision that were not actually provided.” The allegations cover a period of time from March 2014 to May 2023.
CII has agreed to pay $75 million, “plus additional amounts based on future revenues,” while Kancherlapalli will pay $10.48 million. In addition, both parties entered a five-year Corporate Integrity Agreement to help ensure all future arrangements are compliant with the country’s Anti-Kickback Statute and the Physician Self-Referral Law.
This settlement does not represent an admission of guilt by CII or Kancherlapalli.
“Healthcare providers that pursue patient referrals through illegal kickbacks and other unlawful financial arrangements will be held accountable,” Principal Deputy Attorney General Brian M. Boynton, head of the DOJ’s civil division, said in a prepared statement. “We will continue to safeguard federal healthcare funds by rooting out financial relationships between healthcare providers and referring physicians that can corrupt medical decision-making and increase the cost of care.”
“Paying illegal kickbacks to cardiologists so they refer patients undermines the integrity of federal healthcare programs and needlessly increases costs,” added U.S. Attorney Alamdar Hamdani with the Southern District of Texas. “Patients deserve care based on their medical need and not on a doctor or company’s financial interest or gain. This outcome emphasizes my office’s commitment to pursing justice, ensuring the public’s trust in the federal healthcare system and holding the corrupt accountable.”
Imaging provider speaks out after reaching settlement
CII issued a statement highlighting its cooperation in the investigation and its plans to keep providing care. The group also emphasized that it denies the DOJ’s allegations.
“We are pleased to reach the resolution announced today, and CII will continue to service patients across the nation with our fixed and mobile solutions, including our supervision program,” Kancherlapalli said.
Michael has more than 16 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.