JD Supra February 23, 2023
Recent cases of fraud and abuse in the healthcare industry serve as a reminder of the importance of healthcare law compliance and ethical medical business practices. One such case is the qui tam relator case against Arizona-based Modern Vascular, in which the federal government has formally joined in as a party in the complaint.
Background
The case alleges that Modern Vascular and many of its principals, affiliates, and investor physicians and podiatrists violated a variety of fraud and abuse laws, including the federal False Claims Act and the Anti-Kickback Statute.
Essentially, Modern Vascular is accused of engaging in a fraudulent scheme whereby physicians and podiatrists were encouraged or permitted to invest in the company’s office-based laboratories (OBLs) in exchange for...
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