SANTA ANA, Calif.
An Orange County-based medical imaging company will pay more than $8.3 million to resolve allegations it violated the False Claims Act by paying illegal kickbacks to doctors in exchange for patient referrals, federal officials announced Friday.
Modern Nuclear Inc., a mobile positron emission tomography (PET) scan provider based in La Habra, agreed to pay $8.3 million, plus additional amounts tied to future revenue.
Federal authorities allege that from September 2016 through January 2025, the company submitted false or fraudulent claims to federal health programs by violating the Anti-Kickback Statute. Prosecutors say MNI paid referring cardiologists inflated fees—well above fair market value—under the guise of supervising PET scans.
According to the Justice Department, doctors were allegedly paid for time spent treating other patients, for periods when they were not present, or for services that were rarely or never performed. The government also contends the company relied on a flawed legal opinion regarding fair market value that was later withdrawn.
As part of the settlement, MNI entered a five-year corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General.
The agreement requires enhanced compliance controls, oversight of physician relationships, and the appointment of an independent compliance expert.
Officials said the resolution reinforces efforts to combat health care fraud and ensure medical decisions are based on patient need—not financial incentives.