MedQuest Associates, Inc. owns, operates, and manages diagnostic imaging facilities in Alabama, Florida, Georgia, Illinois, Missouri, North Carolina, South Carolina, and Virginia. It offers services, such as arthrogram, bone densitometry, computerized tomography scan, diagnostic X-ray, fluoroscopy, magnetic resonance imaging, nuclear medicine, positron emission tomography, and ultrasound; and women's services, such as breast MRI, breast ultrasound, mammography, osteoporosis screening, and special procedures. The company also provides third party management and billing services to hospitals, physician practices, and ambulatory surgery centers. In addition, it operates and manages mobile magne...
3480 Preston Ridge Road
Alpharetta, GA 30005
Founded in 1993
Sixth U.S. Circuit Court of Appeals Reverses a $11 Million Judgment Against MedQuest Associates, Inc. and Three of its Subsidiaries for Reimbursement Under Medicare in a False Claims Act
Apr 19 13
Karen Hobbs, a former MedQuest employee, brought a qui tam suit against MedQuest Associates Inc., alleging violations of the FCA. This suit concerned MedQuest's compliance with certain Medicare regulations in three of its Nashville, Tenn.-area facilities, known as the Charlotte Center, the Cool Springs Center and the Harding Center. Over two years later, the United States intervened and took over the litigation of the suit. The suit alleged MedQuest violated the FCA in two respects: in two testing facilities, MedQuest used supervising physicians who had not been approved by the Medicare program and the local Medicare carrier to supervise the range of tests offered at the sites, and after acquiring the Charlotte Center, MedQuest failed to properly re-register the facility to reflect the change in ownership and enroll the facility in the Medicare program, instead using the former owner's payee ID number. The district court granted summary judgment against MedQuest and the three Nashville area facilities and entered an $11,110,662 judgment against MedQuest for filing false claims for reimbursement under Medicare Part B. MedQuest appealed. The Sixth Circuit reversed the district court's judgment. The regulatory scheme does not support FCA liability for failure to comply with the supervising-physician regulations. Moreover, MedQuest's failure to satisfy the enrollment regulations and its use of a billing number belonging to a physician's practice it controlled did not trigger the hefty fines and penalties created by the FCA.