According to the federal government, MedNet entered into fee-for-service agreements with hospitals and physician clinics from March 15, 2006, through Jan. 31, 2014. MedNet charged the customers a fee for two types of cardiac monitoring services: event monitory and telemetry. MedNet allowed the customers to bill Medicare for the same services and keep the reimbursement, which resulted in a net profit to the hospitals and physician clinics.
The government claims these agreements violated the federal Anti-Kickback Statute. MedNet entered into these agreements with hospitals and clinics to induce referrals for MedNet’s services, according to the DOJ.
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