Diagnostic facility to pay $3.15M to resolve fraud accusations

A Miami-based independent diagnostic testing facility has agreed to pay $3.15 million to resolve allegations it submitted false reimbursement claims to Medicare. 

VirtuOx falsely identified the place certain services were performed to obtain a higher reimbursement rate from Medicare, according to a May 19 Justice Department news release. The company also knowingly billed Medicare for oxygen spot checks and overnight pulse oximetry tests when only overnight tests were performed.

The Justice Department said the false claims were submitted between January 2016 and December 2020. 

As part of the agreement, VirtuOX signed a five-year corporate integrity agreement that requires the company to retain an outside expert to perform annual claims reviews, according to the release. 

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