U.S. Files Complaint Against Former Cardiac Imaging Inc. Executive Alleging Violation of Stark Law and False Claims Act

The United States has formally lodged a complaint against Rick Nassenstein, a Florida resident and former executive at Cardiac Imaging Inc. (CII) in Illinois. The complaint alleges Nassenstein’s involvement in a scheme where CII made excessive payments to doctors for referring patients for cardiac PET scans, thereby violating the Physician Self-Referral Law (Stark Law). The Stark Law is designed to prevent financial conflicts from influencing medical decisions and to protect Medicare patients from unnecessary services.

The lawsuit contends that Nassenstein orchestrated improper compensation arrangements with referring cardiologists from 2017 to June 2023, leading to inflated healthcare costs. Specifically, it is alleged that CII paid cardiologists as if they were fully occupied supervising CII’s scans, even when they were providing care to other patients in their offices or were not on-site. The complaint further claims that these fees also purportedly compensated cardiologists for additional services beyond supervision that were not actually provided.

The complaint was initially filed by whistleblower Lynda Pinto, allowing private individuals to act on behalf of the U.S. Under the False Claims Act, if found guilty, the defendant may face penalties, and the U.S. can recover triple its losses. The Justice Department, with support from the Department of Health and Human Services, is overseeing the case.

It is worth noting that CII’s current owner, Sam Kancherlapalli, had previously settled related claims for $85 million. The government emphasizes its commitment to combat healthcare fraud and encourages reporting through the HHS hotline. The investigation and prosecution of this matter underscore the government’s dedication to addressing fraudulent practices within the healthcare sector.

The investigation and prosecution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).