A former sales director for the Northeast region of a mobile medical diagnostics company that performed transcranial doppler scans was sentenced for conspiring to offer and pay kickbacks to physicians in exchange for ordering medically unnecessary brain scans, according to a Feb. 13 news release.
What happened?
- From March 2015 through at least September 2020, James Rausch, of Port Jefferson Station, N.Y., conspired with others, including two managers for the company, to enter into kickback agreements with various physicians.
- The conspirators paid physicians, in cash and by check, based on the number of transcranial doppler ultrasounds ordered and used sham rental and administrative service agreements to conceal the per-test payments.
- The scheme resulted in fraudulent bills of approximately $70.6 million to Medicare. Medicare paid approximately $27.2 million to the company for the fraudulent claims.
- Mr. Rausch was sentenced to eight months in prison, followed by one year of supervised release. He was also ordered to pay $17.5 million in restitution.
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