United States Ex Rel. Serrano v. Oaks Diagnostics, Inc.
Opinion
Opinion
Lew, J.
ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS
On July 17, 2008, Defendants’, The Oaks Diagnostics and Dr. Ronald Grusd (hereafter “Defendants”) joint Motion to Dismiss came on regular calendar before this Court. Defendants were represented by Patrick Hooper and the Government was represented by Assistant United States Attorney, Shana Mintz. The Court, having considered all briefs filed in connection with this Motion, as well as all arguments presented by the parties, HEREBY FINDS AND RULES AS FOLLOWS:
I. BACKGROUND
A. Factual Background!
The Oaks Diagnostics, dba Advanced Radiology of Beverly Hills (“Advanced Radiology”) provides diagnostic testing to referred patients. According to the Government’s Intervening Complaint (“Complaint”), Defendants Advanced Radiology, and its owner Dr. Ronald Grusd along with Dr. Earl Fernando and other unspecified employees engaged in a scheme to defraud the Government by performing and receiving Medicare reimbursement for unnecessary diagnostic testing on patients between 1999 and 2003.
In order to bill Medicare Part B, which allows for reimbursement for diagnostic testing, the provider must submit a standardized…