Imaging Centers Settle Anti-kickback Lawsuit With State of Illinois Over MRI Leasing Arrangements

In January 2009, MIDI, LLC, an operator of 14 radiology centers in the Chicago area, agreed to settle a lawsuit, which alleged illegal kickbacks to physicians from the centers, for $1.2 million dollars. The civil lawsuit, which was filed in 2007 by a competing MRI clinic, claimed that the MIDI-affiliated centers violated the Illinois consumer Fraud and Deceptive Business Practices Act, as well as state anti-kickback laws. The state of Illinois intervened in the suit and filed an amended complaint. Specifically, the complaint alleged that the radiology centers entered into “sham” lease agreements with physicians under which the doctors paid a reduced rate for MRI and CT scans while billing patients’ insurance companies a much higher rate (i.e. the full amount of the service), which allowed the referring physicians to keep the difference.

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