Mobile Medical Imaging Firm to Pay $8.33 Million for Alleged Healthcare Kickbacks

Modern Nuclear Inc., a mobile medical imaging company, has agreed to pay more than $8.33 million to resolve allegations that it violated federal healthcare laws through a kickback scheme involving cardiologists. The settlement addresses claims that the company engaged in illegal payment practices to secure patient referrals between September 2016 and January 2025.

Federal investigators alleged that Modern Nuclear knowingly submitted false claims to Medicare and other government healthcare programs. At the heart of the case was an arrangement where the company allegedly paid cardiologists excessive compensation—above fair market value—to supervise PET scans, creating financial incentives that could influence patient referrals.

The investigation uncovered particularly troubling patterns in these payment arrangements. Many cardiologists reportedly received compensation even when they weren’t physically present during the scans. In some instances, doctors were treating other patients in their offices or were completely off-site while still collecting payments. Authorities also found evidence suggesting Modern Nuclear paid for services that were rarely or never provided.

Brett A. Shumate, one of the officials involved in the case, emphasized that such financial incentives can compromise medical decision-making. When physicians receive compensation tied to referrals, patient care risks becoming secondary to financial gain—a direct violation of laws designed to protect healthcare integrity.

“These types of arrangements undermine the core principle that medical decisions should be based solely on patient needs, not financial benefit,” said Bill Essayli, another authority involved in the investigation. “When money influences clinical judgment, patients may receive unnecessary tests or services, driving up costs for everyone.”

The company’s payment structure was apparently defended using a legal opinion letter, which investigators later determined was based on inaccurate information. The consultant who prepared the document ultimately withdrew the opinion, casting further doubt on the legitimacy of Modern Nuclear’s practices.

Federal healthcare laws, including the Anti-Kickback Statute, explicitly prohibit such arrangements because they can lead to overutilization of services, increased costs to federal healthcare programs, and potential harm to patients. When companies like Modern Nuclear submit claims connected to illegal kickbacks, those claims are considered false under the False Claims Act.

“Protecting the integrity of federal healthcare programs requires vigilant enforcement against illegal kickbacks,” said Robb R. Breeden, one of the officials quoted in the case. “Companies that put profits over patients create systemic issues that ripple throughout our healthcare system.”

The case highlights ongoing concerns about fraud in the medical imaging sector, which has seen multiple enforcement actions in recent years. Mobile imaging providers like Modern Nuclear offer convenience for patients but also present unique compliance challenges due to their relationships with referring physicians.

As part of the settlement, Modern Nuclear will implement a five-year compliance program to monitor its business practices, with particular focus on relationships with referring physicians. The company must develop systems to identify and mitigate risks associated with improper payments. An independent compliance expert will review these measures to ensure effectiveness.

The $8,334,350.71 settlement amount reportedly reflects Modern Nuclear’s financial capacity, with provisions for additional payments based on future revenue. The case was initiated by whistleblowers Matt Lieberman and James Whitney, who filed the complaint under qui tam provisions of the False Claims Act. They will receive 16 percent of the recovered funds—approximately $1.33 million.

Legal officials Sanjay M. Bhambhani and Paul B. La Scala handled the matter for the government. The settlement resolves the allegations without a determination of liability, meaning Modern Nuclear has not been officially found guilty of the alleged conduct.

This case is part of broader efforts by multiple government agencies to combat healthcare fraud, which costs taxpayers billions annually and undermines the sustainability of critical healthcare programs.