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Former Cardiac Imaging Inc. President Accused in Stark Law Violation and Kickback Scheme

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Published on February 03, 2024
Former Cardiac Imaging Inc. President Accused in Stark Law Violation and Kickback SchemeSource: Facebook/Rick Nassenstein

Former president and co-owner of Cardiac Imaging Inc. (CII), Rick Nassenstein, faces a False Claims Act complaint filed by the United States, per a federal announcement. Nassenstein, entangled in allegations of monetary manipulation, is accused of subsidizing doctors in a forbidden fashion—cash for cardiac care referrals, a clear violation of the Stark Law, which is designed to prevent these profit-driven practices that can skewer a physician's judgment.

The U.S. Attorney's Office disclosed that Nassenstein, purportedly pursuing padded profits, pressured CII into questionable compensation agreements with cardiologists referring patients for the company's mobile cardiac positron emission tomography (PET) scans, according to a statement by U.S. Attorney Alamdar S. Hamdani. This provocative payment plan not only drove up healthcare costs but also clouded the clinical judgment of the doctors involved, he added.

Federal officials argue that these financial arrangements between healthcare providers and referring physicians, which are claimed to have persisted from at least 2017 through June 2023, corrode the integrity of medical treatment decisions and burgeon the burden of care cost. In a concerted move to confront these conflicts of interest, the Department of Justice affirms it will enforce laws to guarantee unbiased patient care, relayed Principal Deputy Assistant Attorney General Brian M. Boynton, as noted in the Justice Department’s announcement.

Scrutiny was intensified by the lawsuit initially brought forth under whistleblower auspices by a former billing manager at CII, Lynda Pinto. Catching a glimpse of greed, her allegations could enable a recovery thrice the government's losses plus penalties, if Nassenstein is found liable of breaching the False Claims Act. The Justice Department's Civil Division and the U.S. Attorney's Office for the Southern District of Texas, supported by the HHS Office of Inspector General, are tenaciously tackling the matter, with Sam Kancherlapalli, CII's current owner, already settling his slice of the scandal, as reported by the Justice Department.

The government's vigilant vigil against healthcare fraud is underscored by this investigation. Armed with the False Claims Act, authorities continue to solicit tips from the public on potential malfeasance within the health system, a testament to their undeterred commitment to rectifying wrongful acts that might sully the sanctity of Medicare and the well-being of its beneficiaries.