Legal News

MedQuest False Claims Award Overturned by 6th Circuit
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

The $11 million false claims award against the diagnostic imaging company MedQuest Associates Inc was overturned on Monday by the 6th U.S. Circuit Court of Appeals. The federal appeals court found that the district court in Tennessee that had issued the judgment finding MedQuest guilty of flouting certain Medicare requirements had erred. The appeals court found that the violations regarding using unapproved physicians for monitoring patient tests or using an outdated billing code did not amount to Medicare fraud.

Writing for an unanimous three-judge panel, Judge John Rogers observed, “Because these regulations are not conditions of payment, they do not mandate the extraordinary remedies of the FCA and are instead addressable by the administrative sanctions available, including suspension and expulsion from the Medicare program.”

The original plaint had been part of a whistle-blower lawsuit, brought in 2006 by Karen Hobbs, a former MedQuest employee. The Justice Department later intervened in the lawsuit brought under the False Claims Act.


In the case, the Justice Department and Hobbs accused certain company facilities in Tennessee of using physicians who had not been designated for the procedures, and of using the billing code of an individual doctor whose practice was purchased by MediQuest.

Calculating in total 343 violations for test supervision fined at $11,000 each, and 945 instances of the company using the doctor’s billing number, which was again fined at $5,500 per violation – the U.S. District Court for the Middle District of Tennessee granted summary judgment amounting to $11 million to the government.

However, the 6th Circuit reversed the order on Monday.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

In reversing the ruling of the lower court, the 6th Circuit further observed, “The bluntness of the FCA’s hefty fines and penalties makes them an inappropriate tool for ensuring compliance with technical and local program requirements like the special supervision requirements at issue in this case.”





Role Overview Gordon Thomas Honeywell seeks a real estate transactional attorney with three to fi...

Apply now

Litigation Paralegal

USA-CT-New London

Job details No matching job preferences Salary $20 - $23 an hour Job Type Full-t...

Apply now

Associate Attorney


Job Summary: Smith Legacy Law seeks an Associate who will work alongside the legal team in advisi...

Apply now

Air Enforcement Coordinator & Adjudication Officer


The Department of Environmental Quality, Division of Environmental Enhancement seeks a highly qualif...

Apply now




Search Now

Associate Attorney with 3+ years of litigation experience


Atlanta office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney with 3+ year...

Apply Now

Family Law Associate Attorney


Knoxville office of a BCG Attorney Search Top Ranked Law Firm seeks a family law associate attorney ...

Apply Now

Associate Attorney

USA-WI-Wisconsin Rapids

Wisconsin Rapids office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney wit...

Apply Now

Most Popular


To Top