April 14, 2008 — Fred Steinberg M.D.

A board-certified radiologist, Fred Steinberg, M.D., his imaging centers and related entities in Palm Beach County Florida have agreed to pay $7 Million to settle qui tam actions filed against them by former employee, Dr. David Clayman.

The allegations of the case were that the defendants billed federal healthcare programs, including Medicare, for procedures which were never performed, and that the defendants also performed CT scans and ultrasound exams that were not ordered by physicians and were not medically necessary.

“Billing Medicare for tests that are either not medically necessary or not performed is an abuse of the Medicare program that squanders scarce dollars,” said R. Alexander Costa, U.S. Attorney for the Southern District of Florida. “We will aggressively prosecute any physicians, including board-certified specialists, who abuse and steal from the Medicare system to line their own pockets.”

Dr. David Clayman, the former employee who filed the qui tam action, will receive $1,750,000.00 as a reward.

See U.S. Dept of Justice Press Release 4/14/08

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