- Associated Press - Tuesday, February 25, 2014

NEW YORK (AP) - A company operating diagnostic testing facilities in New York has agreed to pay $15.5 million in penalties to settle claims it falsely billed federal and state health care programs for tests never performed or not medically necessary.

The federal government announced Tuesday that Diagnostic Imaging Group will make the payment, ending litigation involving its Hicksville, N.Y.-based subsidiary, Doshi Diagnostic Imaging Services. The government said Doshi once operated chains in New Jersey and Florida.

The settlement resolves claims the company submitted false claims to Medicare and state Medicaid programs in New Jersey and New York. Authorities said claims were made for never performed or interpreted 3D reconstructions of CT scans.

The deal also settles allegations the company paid kickbacks to physicians for diagnostic test referrals. A message left with the company was not returned.

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