Bozeman Health Deaconess Hospital in Bozeman, Montana, settled a three-year-old federal lawsuit alleging the hospital had a “sham” joint venture with Advanced Medical Imaging, a radiology group, that the plaintiffs alleged was looking to open its own outpatient imaging center.

The suit alleges the hospital made millions in “fraudulent claims to government health care programs as part of an illegal kickback scheme to keep a monopoly on radiology services” in the area, according to reporting from the Bozeman Daily Chronicle.

Attorneys for the hospital denied the allegations and said the radiology group was not considering opening its own outpatient imaging center.

Radiologists Frank Rembert, MD, and Michael Paradise, MD, who brought the issue to light under the False Claims Act, will receive an undisclosed portion of the settlement funds. Federal and state governments will also receive some of the settlement money.

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